LLP Registration

Limited Liability Partnership (LLP registration in Jharkhand) or LLP registration is a newer form of business which is a mixture of a company and a partnership firm. While it has benefits and characteristics of a private limited company, it can be operated flexibly just like a normal partnership.

Compliances are lesser in LLP as compared to a company, yet the partners have limited liability since LLP acts as a legal entity separate from partners. In a LLP, some or all Partners have a type of restricted responsibility like that of the Shareholders of an organization. Dissimilar to corporate investors, the accomplices have the ability to deal with the business straightforwardly. Conversely, corporate investors should choose a top managerial staff under the laws of different state sanctions. The board puts together itself (likewise under the laws of the different state sanctions) and recruits corporate officials who then, at that point, have as “corporate” people the lawful obligation to deal with the company in the organization’s wellbeing. A LLP likewise contains an alternate degree of duty obligation from that of an organization.

Acts & Rules On MCA

LLP registration in Jharkhand, LLP registration process in Jharkhand, LLP registration Jharkhand, LLP registration fee in Jharkhand

The Ministry of Corporate Affairs (MCA) is primarily concerned with the administration of the Companies Act 2013, the Companies Act 1956, The Limited Liability Partnership Act, 2008 & other allied Acts, rules & regulations framed mainly for regulating the functioning of the corporate sector in accordance with law. To work on the consistence systems and give merged data on appropriate Acts, Rules and Regulations to the partners, MCA has sent off E-Book for 10 demonstrations and pertinent Rules and Regulations for organizations and LLPs managed by it.

LLP Registration Process

  • Obtain Digital Signature Certificate (DSC):-Before initiating the process of registration, you must apply for the digital signature of the designated partners of the proposed LLP. This is because all the documents for LLP are filed online and are required to be digitally signed. So, the designated partner must obtain their digital signature certificates from government recognized certifying agencies.

Here is a list of such certified agencies. The cost of obtaining DSC varies depending upon the certifying agency. Also, you should obtain class 3 category of DSC.

  • Apply for Director Identification Number (DIN):- You have to apply for the DIN of all the designated partners or those intending to be designated partner of the proposed LLP. The application for allotment of DIN has to be made in Form DIR-3.

You have to attach the scanned copy of documents (usually Aadhaar and PAN) to the form. The form shall be signed by a Company Secretary in full- time employment of the company or by the Managing Director/Director/CEO/CFO of the existing company in which the applicant shall be appointed as a director.

  • Name Approval:- LLP-RUN (Limited Liability Partnership-Reserve Unique Name) is petitioned for the booking of the name of the proposed LLP which will be handled by the Central Registration Center under Non-STP. Yet, prior to citing the name in the structure, it is suggested that you utilize the free name search office on MCA portal.The framework will give the rundown of intently taking after names of existing organizations/LLPs in view of the hunt rules topped off. This will help you in picking names not like previously existing names. The recorder will endorse the name provided that the name isn’t unfortunate according to the Central Government and doesn’t take after any current organization firm or a LLP or a body corporate or a trademark.The structure RUN-LLP must be joined by charges according to Annexure ‘A’ which might be either supported/dismissed by the enlistment center. A re-accommodation of the structure will be permitted to be made inside 15 days for correcting the imperfections. There is an arrangement to accommodate 2 proposed names of the LLP.
  • Incorporation of LLP:-
  • The form used for incorporation is FiLLiP(Form for incorporation of Limited Liability Partnership) which shall be filed with the Registrar who has jurisdiction over the state in which the registered office of the LLP is situated. The form will be an integrated form.

Fees according to Annexure ‘A’ will be paid.
This structure likewise accommodates applying for distribution of DPIN, assuming a person who is to be delegated as an assigned accomplice doesn’t have a DPIN or DIN.
The application for allocation will be permitted to be made by two people in particular.
The application for reservation might be made through FiLLiP as well.
In the event that the name that is applied for is endorsed, this supported and saved name will be filled as the proposed name of the LLP
Record Limited Liability Partnership (LLP) Agreement:- LLP understanding administers the common freedoms and obligations among the accomplices and furthermore between the LLP and its accomplices.
LLP understanding should be documented in structure 3 online on MCA Portal.
Structure 3 for the LLP understanding must be recorded inside 30 days of the date of joining.
The LLP Agreement must be imprinted on Stamp Paper. The worth of Stamp Paper is distinctive for each state.

Benefits of an LLP Registration:

There are numerous benefits to be had from trading through an LLP:

  • The LLP is deemed to be a legal person. It can buy, rent, lease, own property, employ staff, enter into contracts, and be held accountable if necessary.
  • Corporate ownership. LLP’s can appoint two companies as members of the LLP. In an LTD company at least one director must be a real person.
  • Designate and non-designate members. You can operate the LLP with different levels of membership.
  • Protecting the partnership name. By registering the LLP at Companies House you prevent another partnership or company from registering the same name.

Disadvantages of an LLP Registration:

As with all formats of business there will be disadvantages as well as advantages. The following may be considered disadvantageous in some cases:

  • An LLP must have at least two members. If one member chooses to leave the partnership the LLP may have to be dissolved.
  • Residential addresses were historically recorded at Companies House. Whilst the use of ‘service addresses’ now allows for home addresses to be kept out of public view, any address previously supplied to Companies House is still part of the public record unless you pay for the records to be suppressed. For many businesses this is not a problem. However, there are some examples where this may not be desired. Consider solicitors and partners of law firms that may not want their home address so freely available if their work involves sensitive cases.

Limited Liability Partnership is considered easier to set up, It is comparatively hassle-free in the day to day operations, has significantly lower burdensome compliance requirements and costs, and therefore many see it as advantageous to begin their organization in this manner.

Penalty on non-compliance & Winding up and dissolution of LLP

The compliance that is to be followed by LLP is minimal. But, if these compliances are not completed on time, then the LLP will have to pay a heavy penalty. Even if the LLP does not have any activity in the year, it is required to file returns with the Ministry of Corporate Affairs (MCA) annually. If it fails to file the returns, then a heavy penalty will be imposed on the LLP.

A minimum of two partners is required to form an LLP. If the minimum number of partners is below two for six months, then the LLP will be dissolved. It may be dissolved if the LLP is unable to pay its debts.

Documents required for LLP registration in Jharkhand:

  1. Two Passport Size photos of Partners
  2. Copy of Pan card of Partners
  3. Copy of Aadhaar card or Voter ID of Partners
  4. Copy of Bank Statements or Bank Passbook or Electricity Bill of Partners
  5. Copy of Electricity Bill of Registered Office of proposed LLP
  6. Copy of Rent agreement with rent receipt or NOC of registered office (if office would be on rent)

Frequently Asked Questions (FAQ):

Ques:- How can I convert my existing partnership firm into LLP?

Any existing partnership firm that is willing to get converted into LLP will need to apply through Form 17 (Application and statement for the conversion of a firm into LLP. Form 17 needs to be filed along with Form 2 (Incorporation document and Subscriber’s statement).

Ques:- What is the difference between partner and designated partner at LLP in India?

Designated partner are like Director and partners are like shareholders.

The Liability of the Partner is limited solely to amount of contribution mentioned in Limited Partnership Agreement. The Designated Partners are responsible towards the day to day functioning , liabilities prescribed by LLP Agreement as well as for all penalties imposed on Limited Liability Partners for contravention of any provisions applicable and to be complied with by the LLP.

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