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Llp for salaried director

suteekshan (Director) (31 Points)

29 August 2011

Hi,

Myself is a director with a Pvt Ltd firm holding 25% share and full time salaried. Now I like to form a LLP with another person as an individual not related to my existing comapny, what are the requirements and is it legally paossible etc. Kindly give details on this.

And is it possible for a normal salaried person in a private firm to form a LLP.

Thnaks in advance

Rgds

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6 Replies

AMIT MISHRA (Legal Professional) (393 Points)
Replied 29 August 2011

Hi Suteekshan,

Your being a director of a Private Company is no way an obstacle to form a Limited Liability Partnership.You can easily proceed with the formation of your LLP in the manner given below.

INCORPORATION OF A (LIMITED LIABILITY PARTERNERSHIP) LLP

· Obtain Designated Partners Identification Number (DPIN).

· All designated partners of the proposed LLP shall obtain “Designated Partner Identification Number (DPIN)” by filing an application individually online in Form -7.

Documents required to be filed for obtaining DPIN

1. DPIN Form-I (with provisional DPIN generated) along with a high resolution photograph of the applicant and his signatures appended at appropriate places.

2. Proof of identity

3. Proof of residence

4. Certification of photographs and photocopies by an approved authority

The particulars of the certifying authority along with his seal must be clearly indicated

Validity of DPIN- DPIN is valid for lifetime

Approval-It takes around 3-4 days for DPIN approval

· Digital Signature Certificate (DSC)

· Partner/Designated partner of LLP/proposed LLP, whose signatures are to be affixed on the e-forms has to obtain class 2 or class 3 Digital Signature Certificate (DSC) from any authorized certifying agency.

· Reservation of name

· Form-1 for reservation of name shall be filed. Partners shall have to select name of the proposed LLP (upto 6 choices can be indicated).

· Any partner or designated partner in the proposed LLP may submit Form-1 and will append his digital signatures and submit the e-form

· Necessary fee can be paid online by credit card.

· Details of minimum two designated partners of the proposed LLP, one of them must be a resident of India, is required to be filled in the application for reservation of name. Only individuals or nominees on behalf of the bodies corporate as partners can act as designated partners.

· Incorporation of LLP

· Once the name is reserved by the Registrar, Form-2 “Incorporation Document and Statement” shall be filled up and filed.

·· Statement in the e-form is to be digitally signed by a person named in the incorporation document as a designated partner having permanent DPIN and also to be digitally signed by an advocate/company secretary/chartered accountant/cost accountant in practice and engaged in the formation of LLP

· On submission of complete documents the Registrar after satisfying himself about compliance with relevant provisions of the LLP Act will register the LLP, and will issue a certificate of incorporation in Form-16.

· Filing of LLP agreement (Form-3) and Partners’ details (Form-4)

· Form 3 (Information with regard to LLP agreement) and Form-4 (Notice of Appointment of Partner/Designate Partner, his consent etc.) may be filed with the prescribed fee simultaneously at the time of filing Form-2 or within 30 days of the date of incorporation or within 30 days of such subsequent changes.

Thanks & Regards

Amit Mishra

BSamrish & Co

New Delhi