LLP INCORPORATION/FORMATION

LLP INCORPORATION/FORMATION

•   Limited Liability Partnerships have gotten quite popular in the last few years.
•   In this article, we will focus on the process and steps along with the elements essential for the incorporation of an LLP (limited liability partnership). The guidelines are provided by the Limited Liability Partnership Act (LLP Act), 2008.

Elements Essential for the Incorporation of an LLP

According to the LLP Act, 2008, the following elements are essential for the incorporation of an LLP in India.

•   Complete and submit the Incorporation document in the prescribed form, with the Registrar electronically.
•   Have at least two partners, either individual or body corporate
•   Have a registered office in India for sending and receiving communication
•   Appoint at least two individuals as designated partners. They will be responsible for doing all acts, matters, and things as required to be done by the LLP. Also, the designated partners should be resident in India.
•   Each designated partner should hold a Designated Partner Identification Number (DPIN) allotted by the Ministry of Corporate Affairs (MCA).
•   Execute the agreement between the partners or between the LLP and its partners. Further, if an agreement is not present, the provisions in the First Schedule of the LLP Act, 2008 are applied
•   Name of the LLP. It is important to note that the name should be distinct. The LLP cannot have a name which another LLP or Partnership firm or Company is currently using.