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Here is a step by step guide of how a LLP is formed
1) Digital Signatures for the Designated Partners: - The First step to form a LLP is to obtain Digital Signatures for ALL the Designated Partners. A Digital Signature is used for filing all Forms with the ROC. For getting a Digital Signature you need to submit an Application along with copies of your PAN Card and Address Proof. This is generally a 2 day process.
2) DIN Numbers for the Designated Partners: - After obtaining the Digital Signatures of the Designated Partners an Application has to be made to the ROC for Allotment of DIN/DPIN numbers to the Designated Partners. The process of obtaining a DIN (Director Identification Number)/DPIN (Designated Partner Identification Number) is a once in a life-time process. This is generally a One day process.
3) Name Application of the LLP: - Post obtaining the Digital Signatures and the DIN numbers, a Name application has to be made with the ROC for Name Approval of the LLP. Proper care has to be taken to make sure that the name applied for is unique and is NOT similar to any registered trademark or to a trademark for which an application is pending. The ROC then scrutinizes the application accordingly and approves the same. This is generally a 6-7 day process.
4) Incorporation of the LLP: - Once the Name approval is received, one has to file for Incorporation of the LLP. Incorporating the LLP is synonyms with registering the LLP it gives it a legal status. In other words, incorporating the LLP means getting the LLP into existence. Consent of Designated Partners and Partners, Subscriber’s Sheet, Utility Bills and Lease Agreement/NOC are the documents which are required to incorporate the LLP. This is also a 6-7 day process.
5) PAN and TAN: - Post receiving the Incorporation certificate from the ROC, one has to file an application for allotment of PAN and TAN for the LLP. Form 49A (for PAN) and Form 49B (for TAN) has to be filed respectively. These forms have to be signed by any ONE designated partner of the LLP. Only a signed Incorporation certificate has to be submitted along with the Forms for Allotment of PAN and TAN. Applying for PAN and TAN is COMPULSORY for all LLP’s.
6) Drafting the Filing of the LLP Agreement: - After receiving the Incorporation certificate, one has to draft and file the LLP Agreement with the ROC. The LLP agreement contains the Profit sharing ratio, Rights and Duties of the Partners, Business objects of the LLP etc. Proper stamp duty needs to be paid while execution of the LLP agreement. The amount of Stamp Duty depends upon the State in which the LLP is registered and the Capital of the LLP. For Example- For a LLP having its Office in Maharashtra and having a Capital of Rs 100000/-, a Stamp Duty of Rs 1000/- has to be paid while execution of the LLP agreement.
