Incorporation of a Limited Liability Partnership as per Limited Liability Partnership Act, 2008

The incorporation of an LLP is a process that is governed by the LLP Act. The process involves the following steps:

  1. Preparation of the LLP agreement.
  2. Appointment of designated partners.
  3. Filing of the incorporation documents with the Registrar of Companies.
  4. Payment of the registration fees.

Preparation of the LLP agreement

The LLP agreement is a legal document that sets out the terms and conditions of the LLP. It must be signed by all the partners. The LLP agreement should include the following:

  • The name of the LLP.
  • The address of the registered office of the LLP.
  • The nature of the business of the LLP.
  • The rights and liabilities of the partners.
  • The procedure for managing the LLP.
  • The method of settling disputes.

Appointment of designated partners

The LLP must have at least two designated partners. The designated partners are responsible for the day-to-day management of the LLP and for signing all documents on behalf of the LLP.

Filing of the incorporation documents with the Registrar of Companies

The LLP must file the following documents with the Registrar of Companies:

  • The LLP agreement.
  • The statement of compliance.
  • The consent of the designated partners.
  • The power of attorney, if any.
  • The registration fees.

Payment of the registration fees

The LLP must pay the registration fees to the Registrar of Companies. The registration fees are currently Rs. 10,000.

MCQs on Incorporation of an LLP

Here are some MCQs on the topic of Incorporation of an LLP as per the LLP Act, 2008:

  1. Which of the following is not a document that must be filed with the Registrar of Companies for the incorporation of an LLP?
    • The LLP agreement.
    • The statement of compliance.
    • The consent of the designated partners.
    • The power of attorney.
  2. How many designated partners must an LLP have?
    • One
    • Two
    • Three
    • Four
  3. What is the term of office of a designated partner?
    • One year
    • Two years
    • Three years
    • Five years
  4. Who can be a designated partner?
    • Any individual
    • Any body corporate
    • Any firm
    • Any of the above
  5. What is the penalty for failing to register an LLP?
    • Fine of up to Rs. 100,000
    • Imprisonment for up to one year
    • Both fine and imprisonment
    • None of the above

Answers to the MCQs:

  1. The answer is (d). The power of attorney is not a document that must be filed with the Registrar of Companies for the incorporation of an LLP.
  2. The answer is (b). An LLP must have at least two designated partners.
  3. The term of office of a designated partner is fixed by the LLP agreement. However, it cannot be more than five years.
  4. The answer is (d). Any individual, body corporate, or firm can be a designated partner.
  5. The answer is (a). The penalty for failing to register an LLP is a fine of up to Rs. 100,000.