An LLP incorporation s a partnership firm and register under the LLP Act, 2008. It is a hybrid of partnership pay firm and company. The Ministry of Corporate Affairs is the administrative ministry and the Registrar of Companies is the administrative authority. It is a body corporate that has a permanent successor and is a separate legal entity from its partners.
Applicable law
Limited Liability Partnership Act, 2008.
LLP Agreement:
Pursuant to Section 23 of the LLP Act, Section 2008, the mutual rights and duties of all LLP partners and their rights and duties in relation to LLP shall be governed by the agreement between the partners or the LLP and its partners. Partners have the flexibility to formulate a contract of their choice.
Filing an LLP Agreement:
The LLP Agreement governs the mutual rights and duties between the partners
It must be submit in Form Online Form 3 on the MCA Portal within 30 days from the date of insertion.
The LLP agreement must be printed on non-judicial stamp paper [or] of a value specified in the franking related states.
LLP incorporation
Phases:
Stage I – Partners to form an LLP, there will be at least two partners and at least two partners will be appointed as designate partners with DIPN. In the case of body corporate corporate as partners, their nominee can act as designated partner. Of the two designated partners, one must reside in India. (Who at an instant stayed in India for a period of less than one hundred and eighty two days during the previous financial year).
Stage II – D.P.I.N. And DPN to obtain digital signatures. can be obtained by applying online with www.llp.gov.in. Application After submitting the online application, a sign physical copy of Form 7 along with certified copies should be submitted to the Ministry of Corporate Affairs. Address proof and identity proof of the applicant. Digital signatures can be obtain from any certified authorities in India.
Stage III – Name Filing After deciding the name eventually, the application for availability of name has to be filed in Form 1 along with www.llp.gov.in for approval. Please note that the choice of name is subject to the guidelines issued by the MCA.
Stage IV – LLP Contract must be prepare in accordance with the LLP Act. It is not mandatory to file an LLP agreement at the time of registration and the same can be filed within 30 days. If no agreement is made, the provisions of Schedule I of the LLP Act will apply.
Stage V – Filing of Form Document 2, 3 and 4 with required attachments should be filed with www.llp.gov.in. As stated above, documents need to be filled after digitally signing. After verification, the Registrar will register all the documents and issue a Certificate of Incorporation.
Documents required:
IFORM 1-Name Availability Application
IFORM 2-INCORPORATION DOCUMENT
Form 3- Details of LLP Agreement
Form4 Consent of Partners
Application for e-Form 7-Designated Partners Identification Number
Subscription sheet
Appropriate stamp on LLP agreement as per relevant State Stamp Act.
Proof of address of registered office fees
Consent of partners and designated partners
Here are some key features of LLP:
It is described as separate legal entities from their members.
The merit of limited liability for their members.
It is taxed as a partnership.
It has the institutional flexibility of partnership.
Any agreement (“LLP agreement”) between the members governing the governing operation of the LLP incorporation in Bangalore – Maruthi seva Nagar is a private document that is confidential to the members.
They must have at least two “appointed” members.
Their “trading disclosure” requirements are similar to the company’s.
They must be register at the Company House.
Their accounting and filing requirements are similar to those of the company.
They have the ability to create a floating charge.
Appointed members
The LLP must contain at least two “appointed” members. The LLP of designated members has special responsibilities and functions that closely reflect the duties that would normally be performed by a director or secretary of a company.
These include:
Appointment of Director (where appropriate).
By signing the LLP’s annual accounts and delivering to the Companies House.
Preparation, signing and distribution of annual return of LLP incorporation in Bangalore – Maruthi seva Nagar to Company House.
Notify the House of companies of any change in LLP membership, name or registered office fee address.
Acting on behalf of the LLP incorporation in Bangalore – Maruthi seva Nagar if it is injured or dissolve.
If the number of designated members falls below two, each member of the LLP is automatically consider a designated member.
Advertising requirements
Each LLP incorporation in Bangalore – Maruthi seva Nagar must depict or affix its name in clear and legible letters outside each or every fee or place of business (even if it is a member’s home). The name of the LLP should also appear in legible form on many business documents, including:
Business letters and order forms.
Notifications and other official publications.
Websites.
Checks, Invoices Issues and Receipts.
In addition, all business letters and order forms of the LLP, and all LLP websites, must be specified in the following legible letters:
Place of registration and registered number.
Registered .Face address
In the case of an LLP whose name ends with the abbreviation “LLP” or “LLP”, the fact is that it is a limited liability partnership.
Failure to comply with any of these legal requirements may result in penalties for LLP and / or default for all members.
Accounting and filing requirements
LLPs are require to provide the same financial information as companies. Examples of documents to file an LLP incorporation in Bangalore – Maruthi seva Nagar at Company House include:
Annual return.
Annual accounts.
Notice of change in the membership of the LLP, including a change in the status of the member (from member to nominee or vice versa).
Notice of change of registered office fee address.
Details of any mortgage or charge made by LLP.
Failure to file annual accounts on or before the due date will result in penalties imposed by the Company House. Failure to file an annual return results in the LLP coming out of the register at the Companies House.
Floating charge
LLP incorporation in Bangalore – Maruthi seva Nagar can issue debentures and pay a fixed charge and floating charge on its assets as a company.