Minimum Requirement Of LLP's

Minimum of 2 partners, out of which 2 should be designated and at least 1 should be an Indian citizen.

The designated partners and partners can be the same person.

A body corporate that is a partner is required to nominate a natural person as a nominee.

Share capital does not exist in LLP's, but it I necessary for each partner to make some sort of financial, managerial or other contribution.

A Designated Partner Identification Number or DPIN is essential for all the partners All designated partners have to have a Digital Signature Certificate or DSC.

Steps for forming LLP's or Limited Liability Partnerships

The start of the formation of LLP is the obtaining of the Digital Signature Certificate or DSC that requires the self-attested proof of address and identity.

Next is the approval of Designated Partner Identification Number or DPIN; a pre-requisite in the incorporation process. This requires an attestation or certification of designated partners details and sending it to the MCA cell for approval.

The Pre-name application search is the third step that involves making an online search of names available and then providing a minimum of 6 names in order of priority.

The fourth step is the application for name availability that requires to be submitted with the Object Clause that is to be pursued by the LLP; the submission of 6 names and Main Object Clause is necessary.

The fifth step involves making representations in front of the Registrar Of Companies with making changes in the name as suggested by him/her.

Next is the drafting of the LLP agreement, getting it vetoed by the promoters and then sending it for printing. It also requires the processing of e-forms. The documents required include Form 2; a statement by promoters, Form 3; information regarding the LLP agreement, Form 4 and Form 9; a notice of consent and appointment of designated partners with their personal details, LLP agreement duly stamped, subscription sheet duly signed by the promoters and a proof of address of the registered office.

The seventh and final step is the uploading of online e-forms, payment of registration fees and issue of Certificate Of Incorporation. This requires filing all these documents before the Registrar of Companies, following up with him or her and making required changes according to suggestions made.