Agreement for LLP is Filed with ICAI: A Step-by-Step Guide
Limited liability partnerships (LLPs) have become increasingly popular in recent years due to their flexibility in management and reduced liability for partners. If you are looking to start an LLP or have already established one, it is essential to have a comprehensive agreement in place that outlines the rights and responsibilities of the partners. In India, the Institute of Chartered Accountants of India (ICAI) requires all LLPs to file their agreement with them. In this article, we`ll cover the steps you need to follow to file an agreement for LLP with ICAI.
What is an LLP Agreement?
An LLP agreement is a legally binding document signed by all partners of an LLP that sets out the terms and conditions governing the partnership. The agreement outlines the obligations and duties of each partner, the profit-sharing ratio, the management of the LLP, and the procedure for adding or removing partners.
Step-by-Step Guide to Filing an LLP Agreement with ICAI
Step 1: Draft the LLP Agreement
Before filing the agreement with ICAI, you must first draft the LLP agreement. You can draft the agreement yourself or seek the assistance of a legal professional to ensure that it complies with all legal requirements.
Step 2: Obtain DSC and DIN
To file the agreement with ICAI, you must obtain a Digital Signature Certificate (DSC) and Direct Identification Number (DIN) for all partners. The DSC is an electronic signature that ensures the authenticity of a document, while the DIN is a unique identification number assigned to company directors by the Ministry of Corporate Affairs.
Step 3: Register on the ICAI Website
Once you have obtained the DSC and DIN, you must register on the ICAI website. You will need to provide details such as your name, contact information, and DIN.
Step 4: Upload the LLP Agreement
After successful registration, you can upload the LLP agreement on the ICAI website. You must ensure that all partners have signed the agreement and that it contains all necessary details.
Step 5: Pay the Filing Fees
Once you have uploaded the agreement, you must pay the filing fees on the ICAI website. The fee for filing an LLP agreement with the ICAI may vary depending on the number of partners and the capital contribution of the LLP.
Step 6: Wait for Approval
After submitting the LLP agreement and paying the filing fees, you must wait for approval from ICAI. The approval process usually takes around 2 to 3 weeks. If there are any discrepancies or missing information, ICAI may request you to provide additional details.
Filing an LLP agreement with ICAI is an essential step that all LLPs must follow in India. The agreement outlines the roles and responsibilities of the partners and helps avoid conflicts and misunderstandings in the future. By following the steps outlined above, you can ensure that your LLP agreement is filed with ICAI correctly and that your business complies with all legal requirements.