Ans.
STEPS OR PROCESS FOR
INCORPORATING AN LLP
Step 1: Reservation of
name
(a) The first step while incorporating a LLP is the
reservation of name of LLP.
(b) The name of a LLP shall not be similar to that of an
existing LLP, Company or a Partnership Firm.
(c) The applicant has to file e-form 1, for ascertaining
the availability and reservation of name. 6 names in order of preference can be
indicated.
(d) The name should contain the suffix "Limited
Liability Partnership" or "LLP".
Step 2: Incorporation
(a) In the second step, the applicant has to file e-form
2 for incorporating a new LLP.
(b) This form contains the details of the proposed LLP
and the Partners and Designated Partners along with their consent to act as
such.
Step 3: Execute a LLP
Agreement
(a) It is mandatory to execute LLP Agreement. [Sec. 23]
(b) LLP agreement shall be filed with the registrar in
e-form 3 within 30 days of incorporation of LLP
(c) The contents of the LLP Agreement are enumerated
below:
1. Name of LLP
2. Name and address of partners and designated partners
3. Form of contribution & interest on contribution
4. Profit sharing ratio
5. Remuneration of Partners
6. Rights & Duties of Partners
7. Proposed Business
8. Rules for governing LLP.
