Limited Liability Partnerships (LLPs) are commercial vehicles which combine features of partnership and company form of business. LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name.

Unlike in partnership, no partner is liable on account of the independent or un-authorized actions of other partners and accordingly individual partners are protected from joint liability created by another partner's wrongful actions or misconduct.

Mutual rights and duties of the partners within a LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity.

• Minimum 2 Partners (Individual or body corporate)
• Minimum 2 Designated Partners who are individuals and at least one of them should be resident in India.
• Digital Signature Certificate
• LLP Name
• LLP Agreement
• Registered Office

An LLP should have minimum 2 partners. In case any Body Corporate is a partner, then it will be required to nominate any person (natural) as its nominee for the purpose of the LLP.

Partner of LLP can be consisted of

• Companies incorporated in and outside India
• LLP incorporated in and outside India
• Individuals Resident in and outside India

Every LLP should have minimum 2 designated partners who are individuals and at least one of them should be resident in India.

A person or nominee of a body corporate, intending to be appointed as who is appointed as designated partner of LLP should hold a Designated Partner Identification Number (DPIN) allotted by the Ministry of Corporate Affairs.
DPIN can be obtained by submitting application along with address proof and identity proof of the individuals.

All forms for registration of LLP shall be filed online after signing digitally and for this purpose, one of the designated partners shall take digital signature certificate.

Selection of business name is crucial for the image of your venture. You select a name which reflects the business you plan. Ensure selected name satisfy LLP Name Guidelines of Ministry of Corporate Affairs.

Like partnership, partners of LLP can frame agreement for defining their terms, profit sharing ratio etc. The basic contents of Agreement are, Name of LLP, Name of Partners and Designated Partners, and Form of contribution, Profit Sharing ratio and Rights and Duties of Partners.
In case no agreement is entered into, the rights & duties as prescribed under Schedule I to the LLP Act shall be applicable. It is possible to amend the LLP Agreement but every change made in the said agreement must be intimated to the Registrar of Companies.

The Registered office of the LLP is the place where all correspondence related with the LLP would take place, though the LLP can also prescribe any other for the same. A registered office is required for following purposes. At the time of incorporation, it is necessary to submit proof of ownership or right to use the office as its registered office with the Registrar of Companies.

Stage I - Partners
To form a LLP, there Minimum two partners and at least two shall be designated partners having DIPN. In case of body corporate as partners, their nominee can be act as designated partners. Out of two designated partners, one must be resident in India. (Who has stayed in India for a period of not less than one hundred and eighty two days during the immediately preceding financial year)

Stage II - Obtaining DPIN & Digital Signature
DPIN can be obtained by making an application online with�www.llp.gov.in�After submitting the online application, signed physical copy of Form 7 has to be submitted to Ministry of Corporate Affairs along with certified copies of address proof and Identity proof of the applicant
Digital Signature can be obtained from any of the Certifying Authorities in India.

Stage III - Name filing
After finalization of name, an application of name availability has to be filed in form 1 with�www.llp.gov.in�for approval. Please note that selection of name is subject to Guidelines issued by MCA.

Stage IV - Agreement
LLP agreement has to be drafted line with LLP Act. It is not mandatory to file LLP agreement at the time of registration and same can be file with in 30 days. If no agreement is framed, provisions of Schedule I of the LLP Act shall be applicable.

Stage V - Filing of Incorporation Documents
The following documents along with required attachments has to be filed withwww.llp.gov.in

The following documents along with required attachments has to be filed withwww.llp.gov.in

Form 2 : Details of partners, registered office etc

Subscription Sheet: All partners are required to subscribe their names along with signatures to the subscription sheet, which shall be witnessed by any chartered Accountant/Company Secretary/Advocate in practice.

Form 4 : Consent of Partners - Consent of each partner to become a partner of Liability Partnership

Form 3 : LLP agreement - this can be filed with in 30 days from the date of registration

LLP Act 2008 provides special provisions for the Intellectual Property for Foreign Companies/LLP. Foreign Companies/LLP interested in establishing LLP in India can reserve its existing name by which it is registered in the country of its regulation or incorporation for forming an LLP. No LLP will be formed with the reserved name during the course of reservation. The reservation is for a period of three years and can be renewed on fresh application with applicable fees.

Under LLP act, it is mandatory to file accounts and annual return with Registrar of LLP. CompaniesInn can help you in filing returns in time and thus avoid penalty.

In terms of LLP law, induction of partners and changes thereof has to be intimated to Registrar by filing specified returns. Our LLP law experts can assist you in inducting new partners and effect the changes in partners.

CompaniesInn offers following LLP Services as well.

• Conversion of Firms / Companies to LLP
• Conversion of LLP to Company (under Part IX of the Companies Act,1956
• Compromise, Arrangement or Reconstruction of Limited Liability Partnerships

LLP form of business organization has the advantages over Company and Partnership in terms of recognition, compliance and flexibility of operation. It is advisable for existing business structures such as partnership and companies to convert into LLP taking into account of their present level of operation.

The following forms of existing business organizations are eligible to be converted to LLP after complying with the requirements of LLP Act 2008

• Partnership
• Private Limited Company
• Unlisted Public Limited Company

Procedure for converting your business to LLP

Preconditions

• Partnership should be a registered under Indian partnership Act 1932
• All the partners of firm should become the partners of LLP
• Minimum 2 partners as Designated Partners and one of them should be resident in India
• Digital Signature Certificate for one of the Designated Partners
• LLP Name
• LLP Agreement
• Registered Office

 Procedure

• Obtain name approval for LLP
• Application for conversion of firm to LLP in Form 17
• File the following forms along with a statement by all partners with registration number and date of registration of the firm

• After verification, registrar will register all documents and issue Certificate of registration
• Upon registration of LLP, file an intimation to the Registrar of Firms stating the fact that firm is converted into LLP

Preconditions

• The company should be registered under Companies Act, 1956
• There should not be any security interest subsisting on the assets of the company at the time of application
• Partners of LLP should comprise all the shareholders of the company and no one else.
• Minimum 2 partners as Designated Partners and one of them should be resident in India
• Digital Signature Certificate for one of the Designated Partners
• LLP Name
• LLP Agreement
• Registered Office

 Procedure

• Obtain name approval for LLP
• Application for conversion of firm to LLP in Form 18
• File the following forms along with a statement by all partners with registration
• Number and date of registration of the firm.

• After verification, registrar will register all documents and issue Certificate of registration
• Up on registration of LLP, file an intimation to the Registrar of Companies in Form 14 stating the fact that the company is converted into LLP