Ans.
LLP Agreement
The partners are free to make rules related to the mutual
rights and duties of the partners as per their choice. This is done through an
agreement. In the absence of any such agreement, the mutual rights and duties
shall be governed by the provisions of the LLP Act, 2008.
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.