LIMITED LIABILITY PARTNERSHIP – PART 1

Step 1 - Name reservation:


The first step to incorporate Limited liability partnership (LLP) is reservation of name of LLP. Applicant has to file eForm 1, for ascertaining availability and reservation of the name of a LLP business.


Step 2 - Incorporate LLP:


After reserving a name, user has to file eForm 2 for incorporating a new Limited Liability Partnership (LLP).

eForm 2 contains the details of LLP proposed to be incorporated, partners’/ designated partners’ details and consent of the partners/ designated partners to act as partners/ designated partners.


Step 3 - LLP Agreement:

Execution of LLP Agreement is mandatory as per Section 23 of the Act. LLP Agreement is required to be filed with the registrar in eForm 3 within 30 days of incorporation of LLP.


Note

1. An existing partnership firm can be converted into LLP by complying with the Provisions of clause 58 and Schedule II of the LLP Act. Form 17 needs to be filed along with Form 2 for such conversion and incorporation of LLP.


2. Existing private company or existing unlisted public company can be converted into LLP by complying with the Provisions of clause 58 and Schedule III and IV of the LLP Act. Form 18 needs to be filed with the registrar along with Form 2 for such conversion.


3. An existing Listed company cannot be converted to LLP


4. Conversion application (Form 17 or 18) can be rejected by the registrar, if not found appropriate along with eForm 2.


a. The applicant has the option to go for appeal against the application rejected within 90 days and inform the registrar about the action undertaken. After the appeal is decided, the registrar can mark the status of eForm as ‘Sent for re-application’ or ‘Rejection confirmed’

.

b. In case the eForm is marked as ‘Sent for re-application’, the applicant is required to file fresh Form 17 or 18 along with Form 2 within 60 days, failing which the Form will be marked as ‘Rejection confirmed’ by the system.


c. In case of re-application, the fee is not required to be paid again while re-applying for conversion.


d. Any private company or unlisted public company can be converted into LLP. However, in this case LLP shall take same name as that of the company at the time of conversion.

Recent Posts

See All
 
  • LinkedIn
  • Instagram
  • Facebook