Procedure of LLP (Limited Liability Partnership) Formation

Step by step procedure of  LLP (Limited Liability Partnership) Formation, in India.

*** Updated as on February 23rd,2014 ***

What’s Updated? – MCA Circular on : Use of word ‘National’, ‘Bank’, ‘Exchange’, ‘Stock Exchange’ in the names of Companies or Limited Liability Partnerships (LLPs).  Refer General Circular No. 2/2014

Step 1: Apply for DIN 1

Apply for obtaining DIN (Director Identification Number) of proposed Designated Partners.

Need to attach following documents (self attested) by an applicant along with DIN1 Form:-

a)  1 passport size photograph in physical or a soft copy (in .JPEG format)

b)   Address Proof: Passport / Driving license having pin code / Election card. Or Electricity bill / Telephone bill / Bank statement certified by Bank Manager which should not be older than 2 months.

c)   Identity Proof: PAN Card (Mandatory field of DIN form)

d)   Email address of the applicant (Mandatory field of DIN form)

e)  Mobile Number (Mandatory field of DIN form)

f)  Annexure DIN1 (Verification of an applicant) to be signed by an applicant

In case of Foreign Partner / NRI, the Passport copy is mandatory requirement as a proof of identity. The address proof should not be older than 1 year from the date of filing of the  eForm. The Passport copy and address proof should be notarized by the Consulate of the Indian Embassy, Foreign public notary or Company secretary in full time employment / CEO / Managing director of the Indian company in which he / she proposed to be a director.

Step 2: APPLY FOR DIGITAL SIGNATURE CERTIFICATE:

Need to apply for Digital Signature Certificate of 2 Designated Partners. Need to attach documents (Identity Proof and Address Proof) with DSC application form same as mentioned for DIN 1. An applicant is required to affix photo and sign across the photo on DSC application form and on 2nd page.

In case of a Foreign Partner / NRI, the Passport copy and address proof should be notarized by the Consulate of the Indian Embassy, Foreign public notary or Company secretary in full time employment / CEO / Managing director of the Indian company in which he / she proposed to be a director.

Step 3: APPLICATION TO GOVERNMENT FOR  NAME AVAILABILITY OF THE PROPOSED LLP 

Need to file e-Form 1 with www.llp.gov.in for name availability. The applicant also need to give 5/6 proposed names in preference along with their meaning and significance of each word.

Refer Name Availability Guidelines issued by MCA.

Step 4: VERIFICATION OF DOCUMENTS AND FORMS BY GOVERNMENT

After this, Form 1 shall be checked by the Government (Registrar of Companies) in detail and may suggest some changes to be made in the attachments or form itself. Need to make necessary changes, if any.

Step 5: FILLING OF INCORPORATION DOCUMENT & SUBSCRIPTION STATEMENT (E-FORM 2)

After Form 1 is approved by the Government (Registrar of Companies), the next step is to file Incorporation Document & Subscription Statement in E-Form2.

Attachments:-

1) Address Proof (Electricity/Telephone/Property Tax Bill) of not older than 2 months self attested by one of the partners.

2) Incorporation Document & Subscription Statement (signed by each Designated Partner and witnessed by Professional).

Step 6: CERTIFICATE OF INCORPORATION

After verification by government (ROC) and satisfied by it, it shall send soft copy of Certificate of Incorporation via email in Form 16 and physical Certificate of Incorporation by post.

Step 7: DRAFTING OF LLP AGREEMENT

Need to draft LLP agreement duly printed on  Stamp Paper and signed by each Designated Partner with the signatures of two witnesses. Note : The stamp duty applicable for agreement will vary from State to State depending upon the total contribution of LLP.

Step 8: FILING OF LLP AGREEMENT (E-FORM 3)

Need to file following e-forms with the Government simultaneously within 30 days from the date of receipt of Certificate of Incorporation.

a)      Form 3- LLP Agreement

As per updated ROC Procedure,  no need to file Form 4 for appointment of same partners mentioned in Form 2. Refer the **Note** at the end for more details.

Step 9: APPROVAL OF FORM 3

After verification by the Government and satisfied by it, it approves LLP Agreement. This is the last step of LLP Incorporation. The Company can start it’s business now onward.

**Note** : Any existing Limited Liability Partnership (LLP) will need to file the particulars of designated partners/ partners with the registrar at the time of their appointment along with any subsequent changes in the particulars of partner(s) thereafter. eForm 4 is required to be filed for appointment of new Partners and/ or cessation/change in designation of existing partner/ designated partner. No need to file Form 4 for appointment of same partners mentioned in Form 2. The change in the particulars of designated partner or partner having DIN shall be updated in the system through eForm DIN 4 and LLP shall file an intimation thereof in this form.



*****************************************************************
If this article has helped you in any way, i would appreciate if you could share/like it or leave a comment. Thank you for visiting my blog.

Legal Disclaimer:
The information / articles & any replies to the comments on this blog are provided purely for informational and educational purposes only & are purely based on my understanding / knowledge. They do not constitute legal advice or legal opinions. The information / articles & any replies to the comments are intended but not promised or guaranteed to be current, complete, or up-to-date and should in no way be taken as a legal advice or an indication of future results. Therefore, I can not take any responsibility for the results or consequences of any attempt to use or adopt any of the information presented on this blog. You are advised not to act or rely on any information/article contained without first seeking the advice of a Practicing Professional.

422 thoughts on “Procedure of LLP (Limited Liability Partnership) Formation

  1. Hello

    I have an llp registered in rajasthan. My other partner resides in punjab. Can i open the current bank account of the llp in punjab ?

  2. Dear Madam,

    Can the LLP Start its business on getting Certificate of Incorporation or it has to wait for the approval of LLP Agreement?

  3. Thanks a lot Madam

  4. In case of incorporation of LLP in the Form 2, we have to attach two different sheet for Foreign Partner subscription (with Attested by Indian embassy) and Indian Partner subscription?

    Further, in foreign partner subscription sheet who can be a witness?

    • Yes there will be two separate sheets. Foreign partner subscirption sheet shall be attested and witnessed by Indian Embassy if he is Indian citizen

      • In case he is not an Indian citizen, than the subscription sheet attested and witnessed by Foreign Public Notary.

        Is that a sufficient compliance ?

        Thanks a lot for your guidance.

        • If he is not an Indian Citizen, then subscription sheet and other signature documents of incorporation shall be either attested by either of following (As per Companies Incorporation Rules). please check this and follow the attestation.

          Where subscriber to the memorandum is a foreign national residing outside India-

          (a) in a country in any part of the Commonwealth, his signatures and address on the
          memorandum and articles of association and proof of identity shall be notarized by a
          Notary (Public) in that part of the Commonwealth.

          (b) in a country which is a party to the Hague Apostille Convention, 1961, his signatures and
          address on the memorandum and articles of association and proof of identity shall be
          notarized before the Notary (Public) of the country of his origin and be duly apostillised
          in accordance with the said Hague Convention.

          (c ) in a country outside the Commonwealth and which is not a party to the Hague Apostille
          Convention, 1961, his signatures and address on the memorandum and articles of
          association and proof of identity, shall be notarized before the Notary (Public) of such
          country and the certificate of the Notary (Public) shall be authenticated by a Diplomatic
          or Consular Officer empowered in this behalf under section 3 of the Diplomatic and
          Consular Officers (Oaths and Fees) Act, 1948 (40 of 1948) or, where there is no such
          officer by any of the officials mentioned in section 6 of the Commissioners of Oaths Act,
          1889 (52 and 53 Vic.C.10), or in any Act amending the same;

          (d) visited in India and intended to incorporate a company, in such case the incorporation shall be allowed if, he/she is
          having a valid Business Visa.

          Explanation.- For the purposes of this clause, it is hereby clarified that, in case of Person is of Indian Origin or Overseas
          Citizen of India, requirement of business Visa shall not be applicable.

  5. HELLO MADAM THANKS FOR THE VALUABLE INFORMATION.
    we are going to incorporate LLP with 2 Designated partners.

    1. do we need to do any franklin or attestation or stamp duty for SUBSCRIBERS SHEET.

    2. do we need attest the address proff.

    thanks in advance.

  6. Should the consent Letter be notarized for the designated partners in case of Form-2 FOR LLP??

  7. Ma’m

    Need Help in filing of Form-2

    1) Can a rent agreement taken as Proof of Address ?

    2) whether the Subscribers sheet including consent will be printed on same stamp paper together ? if not then on which stamp paper it will be printed separately ?

    3)how much will be the stamp paper value of each ?

    Thanks in Advance

  8. in how much time will i get name approval

  9. HI Madam,
    In Karnataka, We had filed LLP-form 3, which has now been marked for Resubmission with remarks ‘required stamp duty is not paid’. We had taken llp agreement stamp paper of Rs.500/- n capital contributions by partners is Rs.1lac.

    What is the procedure to be followed to pay balance stamp duty of Rs.500/- and resubmit

    Thanks in advance

  10. DOES A SINGLE PERSON CAN FORM A LLP OR NOT

  11. I have submitted documents for close LLP.. After one month ROC upload status : ” Under process of strike off” there after again ROC upload status : “defunct”.
    Please explain, what is status of my LLP.

  12. hi
    i am filling form 1 but facing multiple issue
    prescrutiny error, dsc not matched with din entered.
    kindly help. No proper resolution received from mca helpline

    • MCA was under development after 27th march 2016. Hence professionals and users are facing many technical issues. Please raise ticket and the solution will be resolved within 2 working days. I am also facing many issues while doing pre-fill , pre scrutiny, or DSC registration, but then ticket has to be raised separately. Let us hope the site will give us same response as before.

      • Hello Meenal Mam,

        I saw your blogs very useful. I plan set up a new LLP and am in planning stage. I understand all the procedures you have mentioned to register LLP. My question is

        1. How long (in terms days or months) all these processes (from step-1 to get the llp registered) generally, do take to start business ?

        2. Secondly, If these processes can be done online hasslessly or I need to move here n there ?

  13. in case of conversion of private company into LLP there is need Designated Partner also Partner of that LLP.

  14. Hii, I am going to convert partenership firm into LLP.

    I wanted to know that wether i need to file form 4 consent of partners if i have already filed form 2.

  15. How to incorporate a LLP in which a foreign body corporate will be making contribution (95-99%). One resident has to be designated partner, can the other one be nominee of that foreign body corporate or we have to introduce a third person and act as designated partner.

    Also do we need to file Form FC-GPR with RBI as we do in case of Companies or any other FEMA provisions to be followed?

  16. Hi,

    I have an LLC in the US and setting up an LLP in India. I am an Indian Resident.

    Can I have the following partners in the LLP in India?
    US LLC, Myself and my mother?

    Can the US LLC nominate me as the DP and my mother be the other DP in Indian LLP?

  17. Designated partner means first partners and they have all rights to sign balance sheet, profit and loss account, to operate bank account. The partners may be sleeping or dormant partners may have rights or not.

  18. Mam

    Can CA CS CWA in practice will form one LLP

  19. Can I pay stamp duty on my LLP Agreement electronically or should i draft the agreement on a stamp paper?

  20. Dear Ma’am,

    Does the consent and Subscriber Sheet of NRI Partner need to be apostille? Or a Chartered Accountant or COmpany Secretary can certify it.

    Regards,

  21. Hello,

    You’re awesome to be so helpful in addressing people’s queries and writing such informative blog posts.

    My query is following:
    Can a US body corporate (LLC) be a designated partner in an Indian LLP along with a resident Designated Partner? If not, can the LLC still be a partner if we appoint an additional individual as a Designated Partner?

  22. For induction of 2 new partners and retirement of existing ones, what shall be the stamp duty on the supplementary deed. Rs. 100 or calculated on the basis of capital

  23. Hello Meenal,

    I own an LLP with 2 partners/Directors. Myself and my mother. This is the first year of the LLP. The account is not yet structured.

    My CA is planning to make a salary structure for myself and my mother.

    Do, both of us need to register for Professional Tax? Or the LLP needs to register for Professional Tax?

    LLP is based in Mumbai.

    Your suggestion would be helpful.

    Best.

  24. Hi Ma’m, I am from Mumbai and a LLC wants to lease my shop (in a building). Is there anything that I should be making sure before signing the lease?

  25. nice article Maam. one query, is it necessary to mention LLP no. in LLP agreement?

  26. Is it possible to convert proprietary firm into LLP? Assets are on proprietary firm name. Is it automatically transferred? Or pay stamp duty on LLP Firm name?

    • Conversion from proprietorship firm into LLP is possible. While conversion in the main object you will have to specify that all assets and liabilities will be taken over by the LLP after its conversion.
      Yes stamp duty will be needed to pay on LLP firm name.

  27. In case of conversion of soleproprietorship into LLP is it necessary to register the properties with sub registrar

  28. Can a existing partner become DESIGNATED PARTNER. If so, is there a format of model deed for admission ?

  29. Hi
    One of my friend has issue.

    ->

    He started a LLP company a year back with 3 partners.
    2 of his partners not much intrested and not supporting him.So,he get irritated and now he want to start Pvt ltd company my him self without those guys.
    So,my question is is he need to inform them & change any docs like deed change or anything else..
    or else as per govt mca acts a person can start multiple companies and will be the director for 2 to 200 companies right..so is there he need to submit or he can simply start his own business with new pvt. ltd company ?

  30. Hi Madam,

    I have a LLP with 2 Designated partner(DP) out one which one is a NRI. Now The resident DP wants to retire and a new Indian DP has to be appointed. What procedure should be followed.

  31. Hello Madam – My question – Can we have multiple business say, trading & recruitment under one registered LLP. Further, Can a new business be added to existing business activity?

  32. Thanks.for the information
    I have a query
    can i write the address address with a pen as it got missed out on a llp agreement.’Agreement yet to be registered.
    will it tatamount to changes

  33. Hello Ma’am
    I want to know the LLP incorporation fee strucuture.How much govt fee for the whole proceeding of LLP formation.

    Thanks

  34. My son is an NRI and living in USA. I am converting Pvt. Ltd. Company in LLP. He is a shareholder. How he can sign Subscriber Sheet. Can Notary verify his signature on Subscriber Sheet.

  35. Very informative and nicely explained. I am sure it would be of great help to all starters

  36. CAN I USED SALES DEED FOR ADDRESS PROOF IN llP

  37. Madam,

    I am trying to upload Form 4 for addition of a Designated Partner, but when I upload I get the error- ” The form version you are using is not latest. Please download a fres form and submit again”.
    But I am using the latest form downloaded from mca website. Please let me know what needs to be done

  38. Hello Madam,
    Is it mandatory to file LLP agreement with Registrar at the time of incorporation?

  39. Hi,
    Can I use rent agreement as address proof?
    Regards,
    RA

  40. CAN CA AND CS BOTH TOGETHER START LLP FIRM

  41. Hello Meenal,
    I am changing name of my LLP registered last year. The MCA site says only Form 1 and 5 is required. I have following questions
    1. Do I have to change the LLP agreement as well to include new name and then file form 3 as well?
    2. Form 1 requires “certified copy of extracts of relevant LLp agreement/certified copy of decision/consent of required partners”. Please suggest what kind of document is required for this attachment.

    Your help is very much appreciated
    Thanks
    Manish

  42. Madam,

    Regarding closing of a LLP, I understand that we have to file eform24. Should a physical application also needs to be submitted at the ROC.

  43. Hi Madam,

    We have 2 designated partner in a LLP. Now the want to retire and 2 new Designated partner needs to take over. What is the procedure needs to be followed

    • LLP needs to draft supplementary agreement. Specify the role , power, responsibility, capital contribution, profit sharing ratio, liabilities. print it out on stamp paper, obtain signature of all designated partners ( new) for inclusion of new partners. For retirement of partner, again supplementary agreement is to be made. File Form 3, 4 with ROC within 30 days from execution of agreement.

  44. Hi Meenal,

    First of all I really appreciate your such contribution. It helps us a lot. Great work!!

    Can you please help me in solving my queries??

    (1) I am forming a LLP with 2 more friends and showing my home as Reg office. So what other document should I submit along with address proof? Like NOC from owner or what?

    (2) What will be the amount of stamp duty if Reg ofc is in Meerut?

    (3) Do I have to take stamp paper of Amount equal to the stamp duty and on whose name stamp paper should be purchased?

    (4) Is it required to be notarized in Meerut or just taking print out on above said stamp paper and signed by designated partners along with witnesses is sufficient?

    Many thanks in advance 🙂

  45. Hi,
    Planning to form an LLP with a foreign national.Does he need to be physically present in India for any of the steps you mentioned in your article above.

    Thanks

    • If foreign national would like to become one of the designated partner/ partners of proposed LLP, it is not required for him to be present in India. He will have to arrange his required documents from his home country which should by notarised from foreign public notary.

  46. Want to know can i do notary of LLP agreement from other city(different state). Company address is of different city.

  47. Hello, i just want to know one thing.We have made the LLP agreement and we have got the certificate of incorporation. Just wanted to know do we need to have the registrar stamp on the agreement or not. We have done it on stamp paper however there is no registrar stamp. Just wanted to know is it mandatory to do it in case of LLP.

  48. Dear Mam

    We have formed an LLP with only 2 Individual Designated Partner and we have not filled Form 4. Is is necessary to file Form 4 After Incorporation of an LLP

  49. I want to start a service based pvt ltd company or a partnership firm. The services i want to provide are varying and are not related to any particular area only.

    Is it necessary to mention the services i am going to provide while registration?

    After registering the firm can i introduce additional services without any additional legal requirement?

    Can i do trading with my current company registration certificate? As i am not going to manufacture anything just want to do trading which is a kind of service only.

    Thanks.

  50. I can Appoint the Foreign Director in LLP.

  51. maam..
    please provide procedure vto follow for raising capital of LLP in Existing ratio

  52. i want to change registered office of LLP in same city
    my question is,
    1)what is the procedure?? &
    which form i should file first- form-15LLP or Form-3LLP?

  53. Hello mam
    I file Form 1 and Reserved my name.
    I also file form 2 and register my LLP
    Now my question that Is necessary to notarize LLP Agreement ?

    • After filing form 2 LLP, the LLP will file form 3 along with LLP agreement within 30 days from date of incorporation. In that case LLP agreement is not required to be notarised. it is to be printed on stamp paper amounting to X rs. based upon total capital contribution. The designated partners would sign each page of LLP agreement.

  54. Hi ma’am, I wanted to find that if an LLP is in the process of becoming a shareholder of an unlisted private ltd company, is it mandatory for an LLP to have a PAN number ? IF NOT, then will it be still possible for such LLP to become a shareholder if it has applied for a PAN and the application is in progress ? Please reply. Thanks

  55. Hello,
    I am in process of registering my Firm, as per process I was asked to produce address proof which I did. Unfortunately My electricity bill do not have the full address, Property Tax is not in English (It is in Kannada) and I do not have a Land line. What other address proof can I produce? Please help me with this.

  56. Maam, the ROC issued the cert of conversion of a pvt ltd co to LLP on 10Feb2015
    1. Erstwhile pvt ltd co need not file AR, BS from 01Apr2014to 09Feb2015 since it no longer exists. Is this right?
    2. Can LLP close the first accounting year on 31st March 2016 and file forms 8,11 for the first time in 2016?
    3. Form 14 was not filed. But company master data shows status “Converted to LLP”. Do we need to file now?
    Thanks

  57. Mam, what should be my next step after i receive soft copy of certificate of incorporation by mail. Is it all?

  58. in a company seeking conversion into llp what if the directors and shareholders are different persons? as there is a requirement in form 1 that the applicant should be a designated partner too. how it is possible in this case.

  59. Madam,

    I have to file Form 11, In form 11 it asks- No. of LLP’s in which he/she is a partner. So if a person is designated partner in only one LLP for which this form11 is filed. Will he mention in this column 1 or 0

  60. Very nicely written. I have following querries.
    1). What would be the address proof of LLP at the time of Filing Form 2? (Proof can only be on name of director or someone else as LLP is not incorporated yet)

    2). Is there must be some relation with the amount contributed by partners and there profit sharing ratio? For eg: A & B both are partners sharing profit in 1:1 ratio, but only A has contributed the fund for LLP amounting to Rs. 1 Lakh. than it will be ok?

  61. Mam, Is it required that the designated partners (individuals) should also be the partners in that LLP?

  62. Hello Madam, We are planning to register an LLP. I’m already an employee of an MNC. Can I be a designated partner in an LLP?

  63. Dear Madam,

    What will be the commencement date of an LLP? whether it is the date of approval by ROC or the date of LLP Agreement. I am little bit confused. If you please clarify, it will be very greatful to me.

    Thanks in advance.

    G.S.Pandi

  64. Maam,
    We are 4 directors in the LLP. 2 are designated.
    1. Can we give salary to all the partners too (besides the profit sharing as per percentage mentioned in LLP agreement).
    2. Is the profit to be shared only with designated partners or all partners.

    Thanks.

  65. Madam,

    We are running a partnership firm for last five years. We want to register the same under LLP. We have following queries :
    1) Do we need to change our PAN number and Service Tax registration number?
    2) What is the approximate cost for the process?
    3) Will our previous professional credentials be counted after transformation to LLP?

  66. Hello Mam,
    I have few query in relation to incorporation of LLP with three designated partners(all are private Ltd co.).
    1.) Form-1 allows to fill details of only 2 designated partners.How can i file the details of the third designated partner.
    2.) Form-1 ask for date of resolution for the appointment of nominee.Do i need to mention all the proposed name of the LLP in the resolution.And will the same resolution will be valid for Form-2 as well?
    Thank you Mam.

  67. Hi,

    I work for a Pvt. Ltd. Company.

    Can i form a LLP with a partner?

    WIll i need to inform my exisitng employer first.?

  68. Mam,
    I wanted to know after incorporation of LLP can more partners be appointed as designated partners?Is it necessary to admend the deed?It is necessary to bring contribution by the coming designated partners?

  69. Dear Madam,

    Please could you confirm me that a foreigner can be a Design Partner?

    Regards.

  70. Dear Madam,

    I have an OCI card and I would like to form a LLP company with a partner based in India.
    From my side, I have to provide a passport copy + adress proof.
    But it necessary to be notarized by the Consulate of Indian Embassy?

    Kind regards,

  71. Hello maám, I wanted to know the compliance related to change in the address of a designated partner. As per my understanding the Designated Partner has to inform the Central govt of the change through DIN Form DIR-6 and post approval the same must be communicated to the llp which shall inturn file llp form 4 to intimate the registrar.
    My question is if there is any specific Form or a particular format in which the Designated Partner inform about the change to llp? am I missing something here?

  72. I have two queries,

    1. Can an individual be a designated partner in two LLP’s
    2. I am a designated partner in a LLP. Now my LLP is becoming a partner in another LLP and I as to be nominated as a designated partner on behalf of my LLP. – In this case (a) is it possible to do so (b) can the same DPIN be used and (c) i get a salary from my LLP – in this new LLP who will get the salary – can the salary payable to designated partner be paid to the LLP instead?

  73. Dear Mam,
    I am planning to form a company for Food items Packaging and Marketing. Please suggest whether I have to go for Pvt. Ltd. or LLP formation. What are the advantages or Disadvantages of going for any one.

    • To choose among Pvt. ltd or LLP, you will have to see that how many will be people, and what would be amount of capital. In LLP there is no minimum capital requirement but in private limited company, Rs. 1 lakh should be minimum capital requirement, Also there is no concept of shareholder in LLP, whoever wants to invest in capital of LLP, should be partner. The LLP cannot be converted in Pvt Ltd. but pvt. ltd can be converted into LLP.

  74. HELLO MAM,
    IN CASE OF LLP REGISTRATION, IS IT MANDATORY TO SUBSCRIBE SUBSCRIPTION PAGE IN ONES OWN HAND WRITING JUST LIKE PVT LTD CO??

  75. one copany is converted to llp on 30/03/2012 and still not filed any of form 8 & 11 till date.
    Is there any option so that we can reduce the penaulty.Further the balance sheet signing date is to be near about 5 september ?

  76. Hello mam,
    Thanks for your article. i would like to clear one of my doubt, we 30 friends would like to start a LLP. most of the partners are NRI.my query is,
    1) should all partners submit their address proof attested by indian embassy? or only designated partners
    2) is pan card is mandatory for all partners? or only for designated partners?
    thanks in advance.

  77. Hi Meenal,

    As discussed, over phone, I have one query….

    I own an LLP company since mid 2013 onwards, we are into IT Consulting Service industry, Majorily of Recruitment services.
    we used to work on Perm positions with our clients and apart from that we used to get requirements on Sub contract from our existing clients, so i thought of sharing those requirements to my friends company (Private Ltd)… they are aware that i have my own company of an LLP. till recently i was working as an Independent consultant from my own company.

    Now they wanted me to work for them on a permanent role with their company..

    do suggest, are there any possibility of an LLP member becoming an employee of another company…

    are their any legal binding. as a member of an LLP.

    Regards
    Rajeeva Rao

    • Yes, you can be employee of Private Limited company. Unless there is no relation ( i.e. no one is your relative of director of that company), you can be employee. Even though your relative is director of company, then company will comply provisions of section 188 of Companies Act 2013.

    • Yes, you can be employee of Private Limited company. Unless there is no relation ( i.e. no one is your relative of director of that company), you can be employee. Even though your relative is director of company, then company will comply provisions of section 188 of Companies Act 2013.

  78. Is Professional Tax applicable to LLP? If yes, than PTRC is to be taken or PTEC ?

  79. Mam

    is it necessary that LLP eform 2 is signed by professionals like CA CS Advocates in Practice?

    Or just i shall upload form with my signature only?

    Regards
    Mayank

  80. Me and my friend are planning to register LLP but my friend works in nationalised bank so we need to take premission from bank or llp authority ?

  81. Hello madam,

    We (me and friend) run a website development firm “ABC LLP”. We wanted to start another LLP as “PQR LLP” with 4 members as partners.

    We want PQR LLP to be the PARENT LLP of ABC LLP.
    a. Does a legal entity (like ABC LLP) solely be the designated partner of other.
    b. Can I and my friend (from ABC LLP) hold a small portion of partnership and remaining by the PQR LLP.
    C. What is the process to change the partner structure if I, my friend and PQR LLP plan to hold- 5%, 5% and 90% of the ABC LLP.

    Your help is appreciated.

  82. Hi Maam,

    Me and one of my friend has started a new trading firm which is not incorporated.We are planning to incorporate only after we expand the business.So can we both use the designation Managing director/Managing partner for our firm before incorporation ?

  83. Dear mam,

    My query posted today under “PROCEDURES OF LLP FORMATION” blog seems to be missing.

    It was regarding formation of a LLP from a Pvt.Ltd.Company having manufacturing units in Gujarat and Maharashtra…

    Would you like me to post it again?

    Kindly let me know.

  84. Dear Mam,

    We have a Pvt.Ltd. company with 2 manufacturing units. (Mother plant in Maharashtra, and a Division in Gujarat).

    We have 4- Shareholders.

    We are thinking about separating out 1 Shareholder (who runs the the Gujarat division) into his independent own entity by making it an LLP.

    How can go about it?

    Your opinions would be very much appreciated.

    Kind Regards

    Mr. Patel

  85. Dear mam,

    My LLP name was approved on 12/07/2014 but the llp is not yet incorporated. So i have again applied for the same name. My question is.. Should i have to change the llp agreement and get it notarised again?

    Pls reply as early as possible

    • Once Name is approved you will require to register within 3 months from the date of approval. I think you cannot apply for the same name if it is already approved, you will need to file form 2 and 3 for incorporation.

  86. While submitting Form-2 for LLP formation should we attach Rental agreement or only Electricity bill/muncipal tax bill. Or should we attach both rental agreement & proof like electricity bill.

  87. Hi Ma’am,

    I have a foreign partner in LLP to be incorporated. I am getting all documents of Foreign partner appostiled from Indian Embassy in their Country. My question is regarding LLP Agreement. How will the foreign Partner Sign the LLP Agreement? They have to be in Mumbai for the same??

    • As per LLP Rules, one of two designated partners must be Indian Resident if 2nd partner is foreign partner. If LLP is to be registered in Mumbai, then purchase requisite stamp paper in the name of LLP, obtain signature of Indian resident partner and then send it to Foreign partner to obtain his signature. Kindly obtain notary on page where foreign partner will sign LLP agreement. After receipt of physical LLP agreement, you can file LLP agreement in Form 3 with ROC.

  88. Hello Maám,

    I registered an llp last year but my CA forgot to file the agreement. Now we have filed form 3 LLP with penalty but ROC has marked as sent for resubmission with the following remarks – “Agreement required Rs750 non-judicial stamp paper”. The initial agreement was made on a Rs100 Stamp paper. Now what should we do? buy new Stamp paper worth Rs650? if yes, do we need to notarize it from the same notary or any notary would do?

  89. In case of incorporation LLP in form 1 name of designated partner should be the same for rest of the other forms too.

    Means if I gave X and Y name as designated partner in E-form 1 and A and B name in Form 2 and 3 and 18 will this be possible ?

Leave a Reply

Your email address will not be published. Required fields are marked *

CAPTCHA Image

*