How to Form a LLP Company in India


How to Form a LLP Company in India

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Forming a LLP company in India is simpler than it sounds. As a separate legal entity, an LLP is capable of holding and disposing of all kinds of assets as well as suing or being sued in its own name. Its subsistence does not depend on the presence of its partners and hence it is more stable and easier to operate and move across various locations compared to a Partnership Firm.

There are a few prerequisites that have to be fulfilled in order to incorporate an  Limited Liability Partnership Consultant in India. Firstly, there should be a minimum of two Designated Partners who are individuals and at least one of them must be residing in India.

All applications filed online with the MCA are required to be digitally signed by the authorised signatory, which is one of the Designated Partners. To do so, the designated partner must acquire a Digital Signature Certificate from a government-recognised certifying agency.

Upon being incorporated, the LLP must draft an agreement and file it with the MCA within 30 days of its incorporation. The LLP agreement will cover many aspects such as the amount and mode of contribution, rights and duties of partners etc. The LLP must also pay stamp duty on the agreement which is decided by the State of incorporation.

Moreover, the LLP has to submit PAN/ID proofs of all its partners which should have the same spelling and date of birth as mentioned in their PAN cards. The registrar will also require a declaration that all documents submitted are true. The registrar will then issue the Certificate of Incorporation. The address proof can be in the form of a bank statement, electricity/gas/mobile bill, driving licence or passport.

 

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