Limited Liability Partnership is a new corporate structure that combines the flexibility of a partnership and also the advantages of limited liability of a company at a low compliance cost. In other words, it is thus an alternative corporate business vehicle that provides the benefits of limited liability partnership of a company, but it also allows its members the flexibility of organizing their internal management on the basis of a mutually arrived agreement, as is the case in a partnership firm.
Owing to the flexibility in its structure and operation, it would thus be useful for the small and medium enterprises, in general, and also for the enterprises in the services sector, in particular. Internationally, LLPs are the preferred vehicle of business, and it is required particularly for the service industry or for the activities which involve professionals.
This article will focus on the steps that are to be followed for forming an LLP in Delhi.
Some of the steps that are to be followed to register a Limited liability partnership in Delhi are:
- There must be at least 2 partners for the registration of a limited liability partnership in India and both of them should be resident of India. A requirement of no minimum capital for the purpose of registration is a great advantage of LLP after which DIN should be applied by every partner in partnership separately
- After this, the Partners are required to apply for ROC in Delhi on the official portal of the MCA. The requirement of this is that the directors should have a valid PAN card or an Address Proof and other information like Education Qualification, etc.
- The company is then required to apply for the Digital Signature Certification for the Partners who have the DIN number with them. This certificate is to be affixed with the forms and it is also needed in future for the ROC Return and for many other things. In Delhi, many companies offer the service of providing DSC in the USB mode.
- The LLP then needs to apply for the name and the name is chosen and only provided when some others have not used it or applied for the same. ROC Delhi is the authority which approves only after seeing that no other person has applied or trademarked the name before. Only after verification, the LLP gets its name.
- After the selection of the name, the LLP is required to file for the Incorporation documents to ROC Delhi through the MCA portal. The partner can apply on the official website during the time of the filing the form if he has done some mistake while filling the form. This resubmission chance is only available when the partner has to file again.
- After the verification of the forms, ROC Delhi issues the main Certificate of Incorporation that works as the proof of the registration.
- After this, a current account has to be opened on behalf of the name which is allotted.
- After the Certificate of Incorporation, the businessman is required to fill the LLP Registration Agreement to the ROC office through the official website of MCA. This agreement is just like the partnership firm agreement in which all the details regarding the partner is given.