An LLP is a type of business entity where all the partners have limited liabilities. Each partner is only responsible for themselves and not liable for other partners’ negligence. A Limited Liability Partnership is most preferred by corporations.
An LLP is a separate legal entity distinct from its owners. It can enter into a contract and acquire property in its name. LLP form is not just prevailing in India. It is also seen in countries like the United Kingdom, Australia etc.
Minimum Criteria For LLP Registration
- Minimum of 2 partners
- Registered office in India
- At least one designated partner as an Indian resident in case of involvement of foreign nationals
- DPIN for all partners
- DSC for all Partners
PROCESS TO BE FOLLOWED FOR LIMITED LIABILITY PARTNERSHIP REGISTRATION
One needs to follow these steps to start an LLP in India.
- Appoint partners and designated partners
- Obtaining Digital Signature Certificate (DSC)
- Name Application process
- Prepare all legal documents
- Filing of documents electronically
- File Incorporation with ROC
- Apply for DPIN
- Once the incorporation is received, Draft the LLP agreement
- Filing of LLP Agreement with ROC.
- Need to apply for PAN & TAN (Manually / online)
Naming Guide for an LLP (Limited Liability Partnership Company)
As per Companies Act, 2013 and LLP Act, 2008, it is important to choose an acceptable name for the LLP. Here are a few naming guidelines that need to be followed while deciding a name for your LLP company.
An acceptable name for an LLP has three parts
- Name part
- Object part
- Constitution part
According to the Company Act, 2013 or LLP Act, 2008, the name suggested for an LLP has to be unique and acceptable. It cannot be similar to that of any existing company, LLP or trademark in the same industry or field.
Every company must include an object part in its name which states the nature of business of the entity. The object part of the name will define the main activity of the company or LLP. For example technology, textile, hospital, motors, construction, information, pharmaceutical etc.
If the object part varies and a similar name exists, the name will be considered as unique. If a company exists with the name YYY Constructions then YYY Technology is considered unique. The suggested name must have a certain amount of relevance and must not be too vague.
he constitution part of the name represents the type of entity.
- Pvt Ltd Company, Private Limited Company and Private Limited represent Private Limited Companies
- OPC or One Person Company represent One Person Companies
- Ltd, Limited or Limited Company represent Limited Companies
- LLP, Limited Liability Partnership represent Limited Liability Partnership Companies
LLP gives you the flexibility of a partnership firm with a legal structure. An LLP has limited compliances that need to be followed. Being the most preferred entity by corporates, each partner is responsible for themselves and not liable for their fellow partners.
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