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An LLP or Limited Liability Partnership is a business entity where all the partners are subject to limited liabilities. No partner is responsible or liable for the misbehaviour of any other partner. Delhi, being India’s national capital, witnesses many startups coming up every month.
LLP is one of the most preferred forms of business for startups in Delhi. The process for registering your company as an LLP is a little lengthy but straightforward.
Here are the steps to follow while registering your company as an LLP in Delhi.
User Registration
The Ministry Of Corporate Affairs runs its web portal for business registrations and a separate one for LLP services. Once you open the website, you have to register yourself.
Fill in all the necessary details and choose a username and password. It will also require the company director or partner’s Digital Signature Certificate. After filling the form, you will receive a message regarding your successful registration.
Obtain a DIN
The Director Information Number is required for all the partners of a Limited Liability Partnership. According to MCA’s new notification, every partner now requires a DIN, not DPIN. The e-form for obtaining DIN can be paid only through credit card or internet banking.
All the binding documents must be scanned and attached with the e-form itself.
Precautions while filling the DIN e-form are:
The name should be the same as the ID proof without any prefix like Mr. or Ms.
PAN card is compulsory for Indian residents and passport is mandatory for foreign nationals. These serve as identity proof for registration.
Any address proof such as a ration card or aadhar card or driving license, not older than 2 months (for Indians) and 1 year (for foreigners).
Registering for Digital Signature Certificate
Every partner for the proposed LLP has to register for a Digital Signature Certificate. Signatures can be affixed as class 2 or class 3 from any qualified certifying agency.
The process for registering a DSC for designated partner is the same as DIN. The LLP website of the MCA provides an e-form which has to be filled with correct details.
Name Registration – Form-1
The most important step is the selection of a name for the company. You should shortlist at least 4 to 6 names for the enterprise. Then, run a clearance search for any other similar names held by any private limited firm or OPC or LLP or public limited company.
MCA’s web portal allows you the free facility for conducting a name search. You can put in your criteria, and the system will project similar names (if any) according to the conditions. Once the search is done, you can file Form-1 for name registration. For this form to be filed, a minimum of two partners, out of whom 1 must be Indian. A payment of INR 200/- can be done via card or net banking.
Incorporation – Form-2
The LLP incorporation form includes the details about the designated partners of the company. You have to mention all the details about the number of partners, their names, and the contribution each partner will make in monetary terms.
A copy of each partner’s digital signature has to be attached with the e-form. The proof for the registered office of the LLP is also required to be attached.
There is an option to select the state in which the proposed LLP is situated. The fee for this form depends upon the monetary contribution by each partner. You can also check your application status by logging on to the website.
Drafting LLP Agreement
The LLP agreement is drafted by the designated partners with the help of lawyers. This agreement has to be drafted in accordance with the LLP Act. The contract consists of a number of mandatory clauses which dictate the rules for functioning, the penalties, bank account functioning details, and so on.
LLP Agreement Registration – Form-3
The final step for LLP registration process is the filling of Form-3 for the registration of the LLP agreement. The agreement can be drafted and registered within 30 days of filing Form-2. It contains all the details of the partners and the company’s working structure. The prescribed fee is displayed under the form. If you are planning to begin a startup with a group of associates, make sure that you register your company as a Limited Liability Partnership. In Delhi, it is one of the most common business types. The registration process ensures that the business has a legal identity with all its members having designated a partner identification.
