LIMITED LIABILITY PARTNERSHIP

By growbiz

A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities. It therefore exhibits, elements of partnerships and corporations. In an LLP, each partner is not responsible or liable for another partner’s misconduct or negligence.

ELIGIBILITY:

The procedure for formation of a LLP is very similar to that of a Private Limited Company incorporation procedure. A minimum of two Partners are required to start the LLP formation procedure and a registered office location is required within India. It is important to remember that FDI in LLP is allowed only with the prior approval of the Reserve Bank of India (RBI). Therefore, it is recommended that NRI’s and Foreign National promoters opt to incorporate a Private Limited Company, where 100% FDI is allowed under the automatic route

LLP Formation Documents Required

  • PAN Card of the Partners
  • Address Proof of the Partners
  • Utility Bill of the proposed Registered Office of the LLP
  • No-Objection Certificate from the Landlord
  • Rental Agreement Copy between the LLP and the Landlord (If any)

STEPS TO INCORPORATE LLP

Step 1: Obtain Digital Signature Certificate (DSC) for the Partners

For obtaining DIN (Director Identification Number or Designated Partner Identification Number) for the Partners of the LLP, a Digital Signature Certificate (DSC) is required.

REQUIRED DOCUMENTS TO APPLY FOR THE DSC

  • PASSPORT SIZE PHOTO
  • MOBILE NO
  • EMAIL ID
  • PAN CARD
  • AADHAAR CARD OR VOTER ID CARD OR DRIVING LICENSE OR PASSPORT

Step 2:Obtaining Director Identification Number for the Partners

Once, Digital Signatures are obtained for the Partners, application for Director Identification Number (DIN) can be made. Further, once a DIN is obtained, there are no renewals required and each person can have only one DIN.

Step 3: Obtaining Name Approval

Once two DIN’s are available, application for reservation of name in Form 1 can be made to the MCA. It is important for the promoters to keep in mind the LLP Naming Guidelines and suggest appropriate names for the LLP in the application, to ensure a speedy approval.
The approved name shall be available for 3 Months

Step 4: Filing for Incorporation

  • After approval of name, Form 2 is filed with ROC to incorporate LLP
  • If the application for LLP Registration is acceptable, the Registrar would issue the incorporation certificate. Once, the incorporation certificate is issued, the LLP will be considered to be registered and application for PAN for the LLP can be made.

Step 5: LLP Agreement

The Partners of the LLP then have 30 days time to file the LLP Agreement in Form 3 of the LLP with the MCA. In case, the LLP Partnership Deed is not filed within 30 days, a fine will be applicable.

Your LLP is incorporated now and you can start Your Business.


Condonation of Delay Scheme (CODS), 2018

By growbiz

The MCA had struck off more than 2 lakh companies and disqualified 3 lakh directors of such companies that had failed to file financial statements or annual returns for continuous period of three financial years i.e. from 2013-16.

Aggrieved by disqualification, many disqualified Directors had made representations to MCA and also had approached National Company Law Tribunal (NCLT) and High Courts for stay order of disqualification. The Condonation of Delay Scheme has been introduced to provide a final opportunity for defaulting companies and bonafide Directors to regularize compliance within three-month.

ELIGIBILITY:

The benefits of the Scheme shall be available only for existing Defaulting Companies. The companies whose name is struck off by the ROC under section 248(5) of the Act are not eligible under this Scheme.

Effective Period:

This shall be in force effectively from 1st January 2018 up to 31st March 2018. Given this, the Defaulting Companies shall have make good all defaults within the said period of Three months.

Eligible Forms:

The Defaulting Companies can file only the following forms which are due for filing as on 30 June, 2017 under the Scheme:

  • Form 20B or Form MGT 7: Form for filing of Annual Return of the company having share capital;
  • Form 21A or Form MGT 7: Form for filing of Annual Return of the company not having share capital;
  • Form 23AC, ACA, AOC-4- XBRL, non- XBRL, CFS: Form for filing of Balance Sheet/ Financial Statement and Profit and Loss Account;
  • Form 66: Form for submission Compliance Certificate;
  • Form 23B or Form ADT-1: Form for intimation of appointment of statutory auditor.

Fee:

  • Late Filing Fees of all the Pending form i.e. (Actual + 12 times additional Fees) &
  • Fee of e-CODS 2018 i.e. Rs. 30,000/-

Relief:

The jurisdictional ROC shall withdraw the prosecution(s) pending if any before the concerned Court(s) for all documents filed under the scheme.

However, this scheme is without prejudice to action under section 167(2) of the Act or civil and criminal liabilities, if any, of such disqualified directors during the period they remained disqualified. Further, the DINs of Disqualified Directors continue to be active and their names shall be removed from the list of Disqualified Directors maintained by the MCA.

Effect of Non-Filing of Eligible Forms under the Scheme:

The Defaulting Companies which doesn’t file the necessary forms as prescribed under the Scheme shall continue to be considered as a defaulting under the respective provisions of the Act and the DINs of the disqualified directors associated with these companies shall be deactivated and appropriate actions would be taken against these directors.

CONCLUSION:

At the conclusion of the Scheme, the Registrar shall take all necessary actions under the Companies Act, 1956 / 2013 against the companies who have not availed themselves of this Scheme and continue to be in default in filing the overdue documents.

So, if you want to avail this Scheme, do not wait for the last dates. Just complete your filings and file CODS form.