LLP Registration - Taxonomy

In India, a Limited Liability Partnership (LLP) is a popular business structure that combines the flexibility of a partnership with the limited liability of a company. LLPs are governed by the Limited Liability Partnership Act, 2008. Here are the steps involved in forming an LLP in India:

1. Minimum Requirements:
   • Minimum of two partners are required for formation. There is no maximum limit.
   • At least two partners must be designated as ‘Designated Partners’ and must have a Designated Partner Identification Number (DPIN).
   • At least one of the Designated Partners must be a resident of India.
2. Digital Signature Certificate (DSC): The partners must obtain a Digital Signature Certificate (DSC) for filing the online application.
3. Designated Partner Identification Number (DPIN): The partners must obtain DPIN. If they already have a Director Identification Number (DIN), it can be used as a DPIN.
4. Reservation of Name: The partners need to choose a suitable name for the LLP and check its availability. An application for the reservation of the name can be made to the Ministry of Corporate Affairs (MCA).
5. Incorporation Documents: Preparation of the incorporation documents, which include the LLP Agreement and subscription sheet.
6. Filing of Incorporation Form: Filing the incorporation form (Form FiLLiP) with the Registrar of Companies (RoC) along with the necessary documents. The form must be digitally signed by one of the partners.
7. Payment of Fees: Payment of the prescribed fees for the incorporation
8. Certificate of Incorporation: Once approved, the RoC will issue a Certificate of Incorporation, and the LLP is considered to be legally formed.
9. LLP Agreement: Drafting and filing of the LLP Agreement within 30 days of incorporation. The agreement defines the rights and duties of the partners and other aspects of LLP operation.
10. PAN and TAN: Applying for Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the LLP.
11. Bank Account: Opening a bank account in the name of the LLP using the Certificate of Incorporation and PAN.