Since LLP Acts was passed in India, the option to form and integrate a LLP under The Companies Act instead of a company has broadened in public domain. The option of forming a LLP instead of a company is available to an entrepreneur and the reason behind its widespread use is that it offers transparent and better LLP operations. Partners, if willing are more interested in LLP formation as in India, the laws related to formation and incorporation of a company are not only cumbersome but also a time consuming process. There are many advantages of the LLP hence it is witnessing a widespread use. In comparison to company formation under The Companies Act, formation of LLP is much more cost effective and easy. Due to a regulatory framework that is strict as well as well defined, the credit worthiness of LLP is considerably higher. The liability of the partners is also well defined.
LLP Registration Process in India
The LLP Registration process in India is very easy. To carry out the LLP Registration and integration process, the Registrar of Companies has the power and command. For LLP Registration Process in India, the first and foremost step is to take a decision in collaboration with partners as well as designated partners. As next step, along with a digital certificate signature, designated partner identification number is acquired. For LLP, a suitable name is chosen and the same is checked for its availability. Next, the contract for LLP is outlined. Last but not the least, the Agreement needs to be filed besides a wide array of documents related to incorporation so as to get Incorporation Certificate.
As per LLP Act, the creation as well as bylaws related to limited liability of firms is granted. Under Chapter III of the Act, it expresses LLP as a corporate body. Certain features like perpetual succession, capability and control of being sued and suing and many more have also been conferred by the Act. Designated partners must also be assigned by LLP must also assign as a minimum two partnerships. It is a must to have one of the partners an Indian Citizen.The duly filled application along with the necessary documents can be couriered to the Office of Registrar, Ministry of Corporate Affairs, 3rd Floor, "Paryavaran Bhawan", CGO Complex, Lodhi Road, New Delhi-110003.