Limited Liability partnership- Procedure for incorporation.

Hiral.s

Par 100 posts (V.I.P)
Limited Liability Partnership (LLP) is a body corporate and is a separate legal entity. It is a special type of partnership wherein liabilities of partners are limited.
Incorporation procedure :-

Incorporation procedure of LLP is similiar to that of company.
1) Name of LLP :- The name of LLP must end with the word 'Limited Liability Partnership" or LLP. The application for reservation of the name should be made in Form no. 1 to the register having juridistion over the registered office of the LLP. The reservation of the name is valid for 3months within which person incorporating the LLP must file all the documents to the concerned registrar. If the registrar is satisfied, then reservation of the name is communicated within 7days from the application.

2) Registered office of LLP :- The registered office of LLP need not be the same place where the business is conducted. Form no. 12 should be submitted within 30days for intimating the above address.

3) Partners :- Partner means any person who is a person in accordance with LLP agreement. Every LLP must have minimum 2partners. Body corporates or individuals can become partners. The following persons are disqualified from becoming partners :-
a) having unsound mind
b) who has applied to be adjudicated as insolvent
c) undischarged insolvent

Every person must file with the registrar, the particulars of partners and changes therein within 30days in form no. 4 as prescribed under LLP rules, 2009, If the LLP fails to comply with the above provision, then LLP and its every partner is liable with a fine of not less than Rs. 10000/- but not exceeding Rs. 100000/-

4) LLP Agreement :- LLP agreement must be filled in form no. 3 and notice of appointment of partner in form no. 4 should be filled at the time of filing form no. 2 or within 30days of incorporation

5) Capital Contribution :- Partners in LLP must agree to contribute in accordance to LLP agreement. There is no provision regarding the minimum level of contribution by partners. It has to be agreed by partners.

6) Other Requirements :- If any corporate is a parter, then the board should authorise a person by way of resolution for signing various documents for and on behalf of the company. Incorporation document should be filed with the registrar in form no. 2. Chartered Accountant/ Comapny secretary / cost accountant who is engaged in formation of LLP must certify that all the requirements f the LLP act, 2008, has been complied in Part B of Form no. 2. If any false or wrong statement is made, then the person is punishable with imprisonment for a term which may extend to 2years and with a fine which is not less than Rs. 10000/- but not more than Rs.500000/-

If the requirement of LLP has been complied, then the registrar within 14days of filing form no. 2 shall register the same and issue certificate in the form no. 16 stating that LLP is incorporated.

The certificate issued by the Registrar serves as conclusive evidence that LLP has been incoporated.
 
Limited Liability Partnership (LLP) is a body corporate and is a separate legal entity. It is a special type of partnership wherein liabilities of partners are limited.
Incorporation procedure :-

Incorporation procedure of LLP is similiar to that of company.
1) Name of LLP :- The name of LLP must end with the word 'Limited Liability Partnership" or LLP. The application for reservation of the name should be made in Form no. 1 to the register having juridistion over the registered office of the LLP. The reservation of the name is valid for 3months within which person incorporating the LLP must file all the documents to the concerned registrar. If the registrar is satisfied, then reservation of the name is communicated within 7days from the application.

2) Registered office of LLP :- The registered office of LLP need not be the same place where the business is conducted. Form no. 12 should be submitted within 30days for intimating the above address.

3) Partners :- Partner means any person who is a person in accordance with LLP agreement. Every LLP must have minimum 2partners. Body corporates or individuals can become partners. The following persons are disqualified from becoming partners :-
a) having unsound mind
b) who has applied to be adjudicated as insolvent
c) undischarged insolvent

Every person must file with the registrar, the particulars of partners and changes therein within 30days in form no. 4 as prescribed under LLP rules, 2009, If the LLP fails to comply with the above provision, then LLP and its every partner is liable with a fine of not less than Rs. 10000/- but not exceeding Rs. 100000/-

4) LLP Agreement :- LLP agreement must be filled in form no. 3 and notice of appointment of partner in form no. 4 should be filled at the time of filing form no. 2 or within 30days of incorporation

5) Capital Contribution :- Partners in LLP must agree to contribute in accordance to LLP agreement. There is no provision regarding the minimum level of contribution by partners. It has to be agreed by partners.

6) Other Requirements :- If any corporate is a parter, then the board should authorise a person by way of resolution for signing various documents for and on behalf of the company. Incorporation document should be filed with the registrar in form no. 2. Chartered Accountant/ Comapny secretary / cost accountant who is engaged in formation of LLP must certify that all the requirements f the LLP act, 2008, has been complied in Part B of Form no. 2. If any false or wrong statement is made, then the person is punishable with imprisonment for a term which may extend to 2years and with a fine which is not less than Rs. 10000/- but not more than Rs.500000/-

If the requirement of LLP has been complied, then the registrar within 14days of filing form no. 2 shall register the same and issue certificate in the form no. 16 stating that LLP is incorporated.

The certificate issued by the Registrar serves as conclusive evidence that LLP has been incoporated.

Hey hiral, as we know that a limited liability partnership is a partnership where some or all associates (depending on the authority) have restricted obligations. I read your article and it was really a good attempt. Well, please check my presentation for more detail.
 

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