Procedure for formation of LLP

Procedure for formation of LLP
Source- https://www.mca.gov.in/LLP/pdf/HowToIncorporateLLP.pdf
Pre Registration and Registration Procedure (with links)-
- Ensure that you have completed necessary procedures to obtain DPIN (Designated
Partner Identification Number). You may access the procedure and format of application
in this link- https://www.mca.gov.in/MCA21/dca/help/instructionkit/1098-
FormDIN1_help.PDF. Login to MCA21 portal once the form is completed and submit the
same.
- Ensure you have digital signature and the certificate of the same. Class 2 or Class 3
Digital Signature Certificate to be obtained (can be obtained from any authorised
certifying agency)
- Register yourself on the www.mca.gov.in website, under the LLP tab. Fill the form in its
entirety. After registration is complete, you will receive confirmation of the same.
Reservation of Name-
- The government has launched the RUN-LLP (Reservation of Unique Name)

programme. Access the same under the following website
https://www.mca.gov.in/content/mca/global/en/mca/llp-e-filling.html. Under this, click
on the tab which says ‘RUN-LLP (Reservation of Unique Name).
- Fill the webform given, and pay the fees as prescribed in this form, before 7 days from
the receipt of the Service Request Number (issued once the webform is filled).
- Free name search facility (of existing companies / LLPs) is available on MCA portal, in
order to ensure compliance with Trademark laws.
- An acknowledgement email will be sent following such payment and submission
Incorporation of LLP
- Once the reservation of the name is completed, log back onto

https://www.mca.gov.in/content/mca/global/en/mca/llp-e-filling.html. Under this, click
on the tab which says ‘Fillip Incorporation of LLP’, which might also be ‘Form-2
Incorporation of LLP’.
- The prescribed fee needs to be paid, in compliance with the slabs mentioned in
‘Annexure A’ of LLP Rules 2008.
Filing of LLP Agreement
- In order to complete this procedure, log back into

https://www.mca.gov.in/content/mca/global/en/mca/llp-e-filling.html and select the tab
which says ‘Form-3’. Fill the necessary form and submit. Repeat the same process with
the tab which says ‘Form-4’.
Important provisions to note regarding LLP
1) Section 5- Persons who cannot be partners are
a. Persons of unsound mind;

b. he is an undischarged insolvent; or
c. he has applied to be adjudicated as an insolvent and his application is pending.
2) Section 6- Minimum Numbers of Partners- Must have 2 partners, at least. If this
reduces, then the sole partner, if they’re working alone for 6 months, then they’re
solely responsible for everything the firm does.
3) Section 7- Every firm to have at least 2 designated partners, compulsorily one is a
resident of India.
4) Section 13- Importance and need to have a registered office is mentioned herein. All
communications by the Registrar will be made to this office.
5) Section 14- Deals with the effects of being registered as an LLP, and them being
a. suing and being sued;

b. acquiring, owning, holding and developing or disposing of property,
c. having a common seal, if it decides to have one; and
d. doing and suffering such other acts and things as bodies corporate may
lawfully do and suffer.
6) Section 15- All LLPs must have ‘LLP’ in their name.
7) Section 32- Contributions from each partner to be accounted and disclosed.
8) Section 71- Other laws are not barred from application. LLP Act only complements
those laws.
9) Article 2, Schedule 1 of LLP Act- All the partners of a limited liability partnership
are entitled to share equally in the capital, profits and losses of the limited liability
partnership.
10) Article 3 and 4, Schedule 1 of LLP Act- All partners to indemnify each other in case
of loss during ordinary business procedures, or anything done in order to preserve the
functioning of the company, or in case of any fraud against the company.
11) Article 6 and 7, Schedule of 1 of LLP Act- No partner shall be entitled to
remuneration for acting in the business or management of the limited liability
partnership and No person may be introduced as a partner without the consent of all
the existing partners.

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Procedure for formation of LLP

Pre Registration and Registration Procedure (with links)-

- The government has launched the RUN-LLP (Reservation of Unique Name)

- Once the reservation of the name is completed, log back onto

Filing of LLP Agreement

- In order to complete this procedure, log back into

1) Section 5- Persons who cannot be partners are

a. Persons of unsound mind;

a. suing and being sued;

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