India witnessed the incorporation of 42,186 LLPs against 36,176 in 2019-20, The basic question I keep on encountering from people all over the corner is whether to incorporate a Company(Private Limited) or Limited Liability Partnership (LLP). This question cannot be answered in a simple YES OR NO as it is believed to be. Both the forms have their own advantages and disadvantages. It primarily depends upon a lot of factors viz, location, spectrum, spending capacity, and bye-laws of the place where it is being planned to be opened up. However, this question shall be addressed and discussed in another blog, as of now we will be focussing on how to incorporate an LLP.
Few documents are required to initiate the Incorporation
A. Registered proof of Office -
a. Electricity/Water/Utility Bill of the place where office shall be opened/established.
b. Rent Agreement and No objection certificate from the Owner of the Property
c. If the property is owned by the Partner, such case No Objection Certificate from the concerned partner.
B. Documents of Partners/Directors -
Identity Proof : Aadhar,PAN, Passport, Voter Card
Residence Proof : Utility Bill{Gas Bill(Pipeline), Electricity Bill, Mobile Bill(Postpaid)}, Bank Statement with latest transactions of not less than two months from the date of application for the incorporation of LLP.
C. DIGITAL SIGNATURE
Apply for digital signature for both of the designated partners.
C. FORMS :
1. Reserve Unique Name (RUN Form): This form is primarily used for reserving the desired name and also to check whether such desired name is available with the Ministry of Corporate Affairs. Upon approval, such name remains valid for 90 days from the date of approval of the same.
2. Fillip Form (Form for Incorporation of Limited Liability Partnership) - The form can be downloaded from the Ministry of Corporate Affairs and after filing all the requisite detail along with the necessary documents which are mentioned hereinabove which include;
1. Identity and residence proof of both the Partners
2. Subscriber Sheet (Format is given in the Help kit uploaded on Ministry of Corporate Affairs website)
3. NOC from the owner/director
4. Address proof of the office
Upon submitting the form, the MCA generally reverts back in a day or two with either the approval along with the incorporation certificate or with the objections which need to be rectified within the stipulated time frame.
POST INCORPORATION
A. Post incorporation, registered LLP agreement(On 1000 or 1500 stamp paper) needs to be filed in FORM 3, again can be downloaded from MCA website.
B. Apply for PAN, TAN for the LLP, as it is not mandatory but it is always better to sail with life jackets.
Many thanks,
Adv. Mahima Sharma
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