• What are the steps to incorporate LLP?

Name reservation: The first step to incorporate a Limited liability partnership (LLP) is a reservation of the name of LLP. The applicant has to file Run, for ascertaining availability and reservation of the name of a LLP business.

Incorporate LLP: After reserving a name, the user has to file a Fillip form for incorporating a new Limited Liability Partnership (LLP). It contains the details of LLP proposed to be incorporated, partners’/ designated partners’ details and consent of the partners/ designated partners to act as partners/ designated partners.

LLP Agreement: Execution of LLP Agreement is mandatory as per Section 23 of the Act. LLP Agreement is required to be filed with the registrar in eForm 3 within 30 days of incorporation of LLP.

• What is the validity period of the approved name of LLP?

The approved name of LLP shall be valid for a period of 3 months from the date of approval. If the proposed LLP is not incorporated within such a period, the name shall be lapsed and will be available for other applicants/ LLP. Please note that there shall not be any provision for the renewal of the name.

• Is it mandatory to file and get registered the partnership agreement under LLP?

Yes, it mandatory to execute and file the LLP Agreement in view of Section 2(0) & (q), 22 and 23 of the Act. As per provisions of the LLP Act, in the absence of agreement as to any matter, the mutual rights and liabilities shall be as provided for under Schedule I to the Act. Therefore, in case any LLP proposes to exclude provisions/requirements of Schedule I to the Act, it would have to enter into an LLP Agreement, specifically excluding applicability of any or all paragraphs of Schedule I.

• What are the documents required to be filed by a LLP annually?

LLP is required to file LLP Form 8 (Statement of Account & Solvency) and LLP Form 11 (Annual Return) annually. The ‘Annual Return’ is required to be filed within 60 days of the close of the financial year and ‘Statement of Accounts & Solvency’ shall be filed within 30 days from the end of six months of the financial year to which it relates. Every LLP has to maintain a uniform financial year ending on 31st March of a year.

• What is “Statement of Accounts and Solvency”?

Every LLP is required to file ‘Statement of Accounts & Solvency’ in prescribed LLP Form 8 which contains a declaration on the state of solvency of the LLP by the designated partners and also information related to statement of assets and liabilities and statement of income and expenditure of the LLP. This form has to be filed by the LLP on an annual basis.

• I have incorporated an LLP on 1st December of the financial year, when do I require filing my statement of accounts and annual return?

In case LLP has been incorporated on or after 1st October of the financial year, then LLP can close its first financial year either on the coming or next 31st March i.e. LLP files its first financial year details for 18 months.