Company/ LLP/ Partnership formation

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Company formation is a lengthy process. Into the following 4 stages whole process of company formation is divided :

  1. Planning Stage:  The sum total of the activities of all those who contribute in the building of the enterprise up to the organization of the company and conclusion of the plan to exploit the idea is referred as Promotion of a company. It begins with the serious consideration given to the ideas on which the business is to be based.
  2. Incorporation or Registration Stage: A company is brought into existence with it registration. Only when the company is properly constituted under the Act and the certificate of Incorporation has being obtained from the Registrar of Companies, it can be duly registered.
  3. Capital subscription Stage: Business can immediately commence on its incorporation, if a private company or a public company not having share capital. Only in the case of a public company having a share capital, as such ‘capital subscription stage’ and ‘commencement of business stage’ are relevant. Such a company has to pass through these additional two stages before it can commence business.
  4. Commencement of business Stage: A private company can start its business after getting the certificate of incorporation. Only after getting a ‘certificate of commencement of business’ a public company can start its business.

LLP Registration:

Steps to form LLP Registration:

  1. Digital Signature Certificate (DSC): The digital signature of the designed partners of the proposed LLP must be applied before initiating the process of registration. This is because all the documents for LLP are filled online and are required to be digitally signed.
  2. Director Identification Number (DIN) : All the designed partners or those intending to be designed partner of the proposed LLP, you have to apply for DIN.
  3. Reservation of Name: LLP – RUN ( Limited Liability Partnership – Reserve Unique Name) is filed for the reservation of name of proposed LLP which shall be processed by the Central Registration Centre under Non – STP. It is recommended that before quoting the name in the form to use free name search facility on MCA Portal. Based on the criteria filled up, the system will provide the list of closely resembling names of existing companies/ LLP
  4. Incorporation of LLP : 
  5. The form used for incorporation is FiLLiP ( Form for Incorporation of Limited Liability Partnership) which will be filed with the Registrar who has authority over the state in which the registered office of the LLP is located. The form will be an integrated form.
  6. As per Annexure A fees shall be paid. 
  7. This form also provides for applying for allotment of DPIN, if an individual who is to be appointed as a designated partner does not have a DPIN or DIN.
  8. By two applicant only the application for allotment shall be allowed to be made.
  9. Through FiLLiP the application for reservation may be made.
  10. If the name that is applied for is approved, then this approved and reserved name shall be filled as the proposed name of the LLP.
  11. File Limited Liability Partnership Agreement: The mutual rights and duties amongst the partners and LLP and its partners is governed by the LLP agreement.
  12. Online on MCA portal, Form 3 must be filled for LLP agreement.
  13. Within 30 days of the incorporation Form 3 for LLP agreement has to be filled.
  14. On stamp paper, the LLP agreement has to be printed. The value of stamp paper is different for every state.

Partnership Firm:

What Is a Business Partnership?

  • It is a specific kind of legal relationship
  • Business Partnership are formed by two or more individuals with an agreement between them to carry on a business as co-owners.
  • Types of partnerships and level of involvement vary.
  • It can be registered or unregistered entity.