There are various forms of business entities in India, like the formation of a sole proprietorship, HUF, Partnership Firm, Limited Liability Partnership, One Person Company, Private Limited Company, Public Limited Company, etc.
LLP is a corporate business vehicle that enables professional expertise and entrepreneurial initiative to combine and operate in a flexible, innovative and efficient manner, as a hybrid of companies & partnerships providing benefits of limited liability while allowing its members the flexibility for organizing their internal structure as a partnership. Limited Liability Partnership (LLP) was introduced in India by implementing the Limited Liability Partnership Act, 2008. The aim of the introduction of a Limited Liability Partnership (LLP) is to create an easy business environment for the people.
The minimum and maximum number of partners for incorporating an LLP are two, and there is no limit on the maximum number of partners. The rights and duties of partners are governed by scheduling one of the LLP Act unless the LLP and partners create an LLP agreement. The self-agreed LLP agreement provides the flexibility and contractual freedom to partners, to fulfill their objective and interest of the partners and their organization. LLP agreement is mandatory compliance in the case of LLP firms for the smooth long term functioning of LLP.
The Ministry of Corporate Affairs (MCA) of India notified revised rules for the Incorporation of Limited Liability Partnership (LLPs) effective from 02nd October 2018.
Once the name is approved, the name approval letter will be issued. Further, the next step is to file the eForm FiLLiP (Form for incorporation of Limited Liability Partnership) within three months from the date of procuring the name approval letter, and FiLLiP deals with the incorporation of a new LLP and/or application for allotment of DIN/DPIN. This eForm is accompanied by all supporting documents, including KYC details and documents of designated partners, partners, etc., details regarding the registered office address. Once the eForm is processed and found complete, an LLP is registered, and LLPIN is allocated. Also, DINs/DPINs gets issued to the proposed designated partners/nominee of body corporate designated partners who do not have a valid DIN/DPIN. Maximum 2 designated partners are allowed for using this integrated form for allotment of DIN/DPIN while incorporating an LLP.
The online LLP registration process is redesigned with the aim of Ease of Doing Business. The redesigned process is likely to bring down the processing time of applications by CRC, which could be such a relief for the applicants. Now the processing of the e-forms viz. RUN-LLP and FiLLiP are now centralized by the Registrar in the hands of the Central Registration Centre (CRC) for and on behalf of the jurisdictional Registrar.