Introduction
In October an amendment came into force which introduced a new registration process of Limited Liability partnership (LLP) firm. Previously, there were 2-3 forms required during filing of incorporation form but now it is a faster process and there is no need to file 2-3 forms for incorporation as new FiLLiP form is launched which makes the process of incorporation more fast and easy. This article talks about the new registration process so you will get an idea about the LLP registration process.
LLP new registration process
• The first step of the new registration process of LLP is to obtain a Digital Signature Certificate (DSC) for proposed director without obtaining this you cannot proceed further so you have to obtain first Digital signature certificate for your proposed director. The DSC of a director is a must because it is very important during e-filing of forms as you need to fill your digital signature certificate.
• Then you have to reserve your firm's name under LLP-Run services, after amendment you are not required to fill form 1 for reservation of name as according to new amendment now you have to reserve name under LLP-RUN services. For using services of LLP-RUN you have to create an account on the website then you have to click on the LLP-RUN web service then you can request for reservation of name. You can request two names for your LLP so registration on one name will be done if it is available. Necessary fee payment needs to be done to reserve name(s).
• If you don’t want to reserve your firm name through the LLP-RUN web service then you can skip it by filing a FiLLiP form. New registration process introduced the FiLLiP form which makes the registration process easier. You are not required to fill out a different form for the Director Identification number you can now apply for director identification number through FiLLiP form. This form also reserves your firm name. If the firm’s designated partners have their director identification numbers then you can choose the pre-fill option or if they don’t have director identification number then you have to fill the required details like personal and professional details. If everything is fine with your form then authority will accept your form and issue a certificate of incorporation to you.
• After incorporation of your Limited liability partnership firm you have to file your LLP agreement within 30 days of incorporation of firm and you need to file form 3 for filing of LLP agreement and this form is mandatory for an LLP within 30 days of its incorporation. After incorporation of your LLP firm you have to comply with the rules and regulation of the Ministry of corporate affairs and you have to file your annual statement and financial statement to the authority. If you want to convert your partnership firm into an LLP then you have to file form 17 online or if you want to convert your company into an LLP then you have to file form 18 online on the website of ministry of corporate affairs.
• After incorporation of your LLP firm you need to comply with rules and regulation of income tax department of India and you need to file your LLP’s income tax in every prescribed period. You also need to register your PAN and TAN number so you can comply with the rules and regulation of income tax department of India. PAN and TAN registration can be done online. PAN is required for filing of income tax return and TAN is required for deducting or collecting tax.
Conclusion
As you can see in the above article that in October 2018 a new registration process of LLP is launched and it is now easier to register your LLP under the Ministry of Corporate Affairs. As you can see, a new form like FiLLiP was introduced which makes the process easier and faster. Now you have two options for reservation of name you can choose one from Fillip or LLP-RUN services. So if you are thinking of starting a new LLP firm then you should consider these above given points so you don’t get confused with the process of LLP registration and you should also register your PAN and TAN so there will be no problem arises for you during filing of taxation.
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