What is Limited Liability Partnership (LLP)?
LLP is a partnership formed and registered under LLP Act, 2008. It is a hybrid of partnership firm and a company. Ministry of Corporate Affairs is the administrative ministry and Registrar of Companies is the administrative authority. It is a body corporate having perpetual succession and is a legal entity separate from its partners.
To understand the difference between a partnership firm, Limited Liability Partnership and a company click here.
Limited Liability Partnership Act, 2008.
Procedure for Registration of LLP
All designated partners of the proposed LLP shall obtain “Designated Partner Identification Number” by filing DIR-3 application
Partner / Designated partner of LLP / proposed LLP, whose signatures are to be affixed on the e-forms has to obtain class 2 or class 3 Digital Signature Certificate (DSC) from any authorized certifying agency.
Select name of proposed LLP and file Form-1 for reservation of name.
Once the name is reserved, fill up Form-2 “Incorporation Document and Statement”.
Form -3 (Information with regard to LLP agreement and changes, if any made therein) and Form-4 (Notice of Appointment of Partner/Designate Partner, his consent etc.) are to be filed. Once the above forms are filled according to the provisions of LLP Act, the LLP will be ready to start its operations.
Can firm, private company and unlisted public company convert into LLP?
Yes, a firm, private company and unlisted public company can convert itself into LLP. Registrar of Companies shall issue certificate of registration after applying for above conversion. After such conversion all property of firm or company shall vest in LLP.