Defining a Partnership firm
‘The Indian Partnership Act, 1932, Section 4 states the rules, regulations and laws of a partnership firm. Partnership companies are governed by the provisions mentioned in the act. According to the act, a partnership firm is defined as “The relation between individuals who have agreed to share the profits and losses of business.”
Meaning of a Limited Liability Partnership
Limited Liability Partnerships are preferred by Professionals, Small Business Owners and businesses that lack adequate capital or a business idea where the individual is looking to start a company with a minimum amount of investment.
As per the LLP Act, 2008, the necessary steps to be followed for a LLP registration procedure are as mentioned below-
- Appoint partners and other crucial members
- Acquire Digital Signature Certificate (DSC)
- Filing an application for DPIN (Designated Partner Identification Number)
- Reserving a name of the company
- Draft the LLP Agreement
- Filling the Incorporation Application form
- Filing the Fillip Form.
A Fillip is a form of incorporation of Limited Liability Partnership. Form 5, Form 17 and Form 18 must be filled and submitted for approval to the Registrar after which a Certificate of Registration will be received. Later, the partners receive LLPIN (Limited Liability Partnership Identification Number)
Documents Necessary for Limited Liability Partnership Registration in India
Certain documents required for LLP Registration for an appropriate filing are as mentioned below-
From the designated partners- A copy of PAN card of the designated partners,
- A copy of an Aadhaar card of the partners,
- Address proof which includes mobile or telephone bill, bank statement,
- Identity proof of all the partners such as Passport or Driving license or Voter’s ID card at the time of incorporation,
- Passport-size photograph of every director and shareholder,
- If any of the partners is an NRI or a foreign national, then he should present the certified passport.
- Current address proof of the registered office, for instance, electricity bill or water bill or property tax receipt,
- If the office is situated on a rented location, NOC (No-Objection Certificate) from the owner is compulsory;
- A copy of Notarized Rental Agreement, if the property is rented.
