When forming a Limited Liability Partnership (LLP) in India, there are certain legal formalities that must be followed to ensure compliance with the law. One such requirement is the filing of the LLP agreement with the Registrar of Companies (ROC). In this article, we will discuss why the filing of the LLP agreement is necessary, what it entails, and how to file it.
Why is it necessary to file the LLP agreement with the ROC?
The LLP agreement is a legal document that outlines the terms and conditions of the partnership between the partners. It is essentially the constitution of the LLP, and it sets out the rights and obligations of each partner, the profit-sharing ratio, the management structure, and other important details. The agreement must be drafted and executed before the registration of the LLP, and it must be filed with the ROC within 30 days of registration.
The filing of the LLP agreement with the ROC serves several purposes. Firstly, it ensures that the agreement is on record with the government, which provides a level of transparency and accountability. It also enables the government to verify that the agreement is in compliance with the LLP Act and rules. Moreover, the filing of the agreement is an essential step in completing the registration process of the LLP.
What does filing the LLP agreement with the ROC entail?
The filing of the LLP agreement with the ROC involves submitting Form 3, which is an electronic form that can be filed online through the Ministry of Corporate Affairs website. The form requires details such as the LLP name, registration number, and information about the partners. Additionally, a copy of the LLP agreement must be attached to the form.
Before filing Form 3, the partners must ensure that the agreement is duly executed and notarized. They must also ensure that the agreement complies with the LLP Act and rules and that it has been attested by a practicing chartered accountant, company secretary, or cost accountant.
How to file the LLP agreement with the ROC?
To file the LLP agreement with the ROC, the partners must follow these steps:
1. Obtain a DSC (Digital Signature Certificate) for at least one designated partner of the LLP.
2. Create an account on the Ministry of Corporate Affairs website.
3. Fill out Form 3 with the required information and attach a copy of the LLP agreement.
4. Pay the prescribed fee for filing the form.
5. Once the payment is made, the form can be submitted online.
After submitting the form, the ROC will verify the details and the attached agreement. If everything is in order, the ROC will approve the form, and the LLP agreement will be deemed to have been filed. It is important to note that any errors or omissions in the LLP agreement or the filing process can result in delays or penalties.
Conclusion
In conclusion, the filing of the LLP agreement with the ROC is a crucial step in the registration process of an LLP. It ensures compliance with the law, provides transparency and accountability, and allows the government to verify the terms of the partnership. Partners must ensure that the agreement is properly executed, notarized, and compliant with the LLP Act and rules. They must also submit the agreement through Form 3, pay the prescribed fee, and ensure that everything is in order before submitting the form. By following these steps, partners can successfully file the LLP agreement with the ROC and start their business with legal certainty.
