Limited Liability Partnership Firm (LLP)
Limited Liability Partnership (LLP) is a similar type of Partnership firm which is most common and preferred by new start-up Business Persons. It is the most accessible type of business entity with the privilege of getting limited liability. It gives liberty to all contributing partners to incorporate a partnership entity where the responsibility of each partner is limited up to the extent of his contribution towards partnership business. Limited liability means if Firm defaults for creditors, then the loss cannot be compensated by selling personal Assets of the Partners.
Features of a Limited Liability Partnership Firm
Corporate Body
Perpetual Succession
Limited Liability
Least Requirements
The LLP Agreement
Secure Online Registration and E-filling
Easy Conversion into other Business Structure
Easy Business Management
Profit-Sharing Business
How to Register Limited Liability Partnership (LLP)
[Easy Steps to start business]
A Limited Liability Partnership (LLP) is a form of Firm having the status of a legal entity separate from its partners and have perpetual succession. Any two or more persons, associated for carrying on a lawful business with a view to profit, may form an LLP after registration with the Commission as per the Limited Liability Partnership Act, 2017 (the “Act”) and the Limited Liability Partnership Regulations, 2018 (the “Regulations”). The following are the steps for registration of LLP:
Step 1: Name Reservation
The first step of LLP formation is to apply (either online or in physical form) to the registrar as per LLP-Form-I [ Part-1] provided in the Companies Regulations, for the reservation of name along with Name availability fee.
Three names are to proposed fulfilling the criteria specified in Section 6 of the Act and shall have the acronym “LLP” as the last letters of its name. The name of the LLP shall not contain words and combinations thereof, which prohibited in Regulation 4 of the Regulations.
The registrar, if satisfied, that the proposed name fulfills the criteria specified in Section 6 of the Act and the Regulations may allow the name as per LLP- Form-I [Part II] for 30 days from the date of availability of name.
The availability of name shall stand canceled where the applicant fails to apply for the incorporation of LLP within the period mentioned above.
Step 2: LLP Incorporation
The applicant within 30 days of the receipt of the name reservation applies to the registrar as per LLP-Form-III provided in the Companies Regulations, for the incorporation of Limited Liability Partnership along with a Fee. Incorporation documents shall include:
(a) Copies of the National Identity Card (NIC) of the Partners and designated partners. If filing a manual Application witness to the documents required. In the case of a foreigner, a copy of passport.
(b) Attested copy of LLP agreement duly executed by the partners, witnessed and notarized by Notary Public;
(c) Consent of designated partner (if any);
(d) In case of physical application, original bank challan evidencing the payment of fee as specified in Fee Schedule attached with the LLP regulations;
(e) Authority letter signed by all the partners in favor of the person who is authorized to file documents;
(f) Copy of name availability letter
The applicant within 30 days of the receipt of the name reservation applies to the registrar as per LLP-Form-III provided in the Companies Regulations, for the incorporation of Limited Liability Partnership along with a Fee. Incorporation documents shall include:
(a) Copies of the National Identity Card (NIC) of the Partners and designated partners. If filing a manual Application witness to the documents required. In the case of a foreigner, a copy of passport.
(b) Attested copy of LLP agreement duly executed by the partners, witnessed and notarized by Notary Public;
(c) Consent of designated partner (if any);
(d) In case of physical application, original bank challan evidencing the payment of fee as specified in Fee Schedule attached with the LLP regulations;
(e) Authority letter signed by all the partners in favor of the person who is authorized to file documents;
(f) Copy of name availability letter
Step 3: Get a Certificate of Incorporation
On registration of the incorporation documents, the registrar shall issue a Certificate of Incorporation.
Step 4: Start your business
- After getting a Registration Certificate from SECP, an LLP can start its business operations