Simple Learning Guide to MCA LLP Form 12 with Penalty

What is LLP Form 12

In India, the concept of a limited liability partnership (LLP) was started in the year 2008. LLP is a hybrid format of incorporation like partnership and company. LLP rendered to the partnership made and enrolled beneath the Limited Liability Partnership Act, 2008, as per section 2(n). Limited Liability Partnership is important a partnership despite it is said to be the body corporate beneath the Limited Liability Partnership Act.

It has the characteristics of both of these kinds. This stated that the partners who have limited liability towards a company pointed out that their assets are not used to furnish the debt of the company. There would be a minimum capital contribution need. The Limited Liability Partnership Act of 2008 controls all the limited liability partnerships. The same is a popular engagement company as various entrepreneurs are choosing it.

Kind of Limited Liability Partnership Form 12

Distinctive Legal Entity: Opposite to the partnership firm, a limited liability partnership is seen as a separate legal entity. Limited Liability Partnerships have the capability to own assets and made liabilities in their names. They could also sign contracts and can be litigation in their names.

Limited Liability of the Engaged Partners: The liabilities of the Limited Liability Partnership’s partners’ are within a boundary and vary from others. If the Limited Liability Partnership is suffering and winding the outcomes of the debt or repayments, their assets would not be referred to in the attachment.

But in some bogus examples like fraud, unlawful and unjust conduct, or the commission of offenses, the partner’s liability might become limitless.

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Profit-Sharing: The limited liability partnership’s partners will share business profits in the identical way that traditional firm partners performed. They are permitted to set their profit ratios.

The Partners of Limited Liability Partnerships: Limited Liability Partnership partners would be either corporations or individuals. Moreover, a person would not be a partner in a limited liability partnership when he does not have a stable mind or get insolvent.

All the time, Limited Liability Partnerships must pose at least two partners. Moreover, the number of partners who could engage is unlimited, while in the traditional partnership the company’s partners are limited to the highest of 50. If LLP members are lesser than two and the only partner is running the business for exceeding 6 months then the responsibility to the businesses is not limited.

Advantages of the LLP Form 12

• It is adjustable in managing the internal framework of the LLP as compared to managing the internal framework of the company.
• The partners in an LLP would not be limited in number, but the higher max no of shareholders would be limited in a private limited company.
• The use and raising of the funds rely on the willingness of the partners. The funds are used and drawn through compliance with the related acts.
• There is no essential audit. Irrespective of the capital shares all the firms, public or private need their accounts to get audited. The audits would not be needed for the case of the LLP.

Similar: Simple Guide to Form LLP 8 Filing with Due Date & Penalty

Service of the Documents upon the LLP Form 12

A document might be provided on a Limited Liability Partnership or a partner or designated partner by sending it, under the Section 13(2) of the Limited Liability Partnership Act:

(i) by post under a certificate of posting; or

(ii) by registered post

(iii) in any additional way mentioned through the law

In these forms and ways as might be mentioned at the registered office or any additional address particularly specified by the LLP.

As per the rule 15(1) of the LLP Rules, 2009, a document would be provided to an LLP or a partner or designated partner through the below-mentioned ways:

electronic transmission (or)
courier.

Under Rule 15(2) of the LLP Rules, 2009 both the terms “electronic transmission” and “courier” have been described.

Every LLP will pose an enrolled office to which all the communications and the notices might be addressed. (1) But an LLP would indeed show any additional address for the communications and to send the notices. (2) the goal of showing the additional address is to provide the documents to LLP or its partners or the designated partners.

Rule 16(2) of LLP rules, 2009 furnishes that the LLP, moreover to the registered office address, the LLP might show any additional address as its address for the service of the documents beneath section 13(2) of the Limited Liability Partnership Act.

Process as Per 16(2) of LLP Rules, 2009 via Form 12

• By following the principles specified in the LLP agreement.
• When the LLP agreement does not say anything about the problem, there is a need for the approval of all the partners prior to the declaration of any address as the address for the service of documents.

Note: LLP agreement (3) rendered that any agreement written between the partners of LLP and its partners which mentioned the partner’s mutual rights and obligations and their liability for the LLP. Partner[4] rendered that any individual who participates in a limited liability partnership following the LLP agreement is directed to a partner in the LLP.

Notifying the Additional Addresses to the Registrar

Rule 16(3) elaborates that notifying the additional addresses for the service of documents to an LLO will be provided to the registrar within 30 days and must follow the need of rule 16(2).

Note: A Registrar, or an Additional, Joint, Deputy, or Assistant Registrar, liable for registering companies under the Companies Act, 2013, is referred to as a Registrar. [5] but the companies act, 1956 is specified in the registrar’s description, the reference to the companies act, 2013 will be incurred of an intention is otherwise beneath section 8(1) of the General Clauses Act, 1897, complying with the abolition of the Companies Act, 1956 and the enactment of the Companies Act, 2013.

LLP must be sent Limited Liability Partnership Form No.12 to the registrar to notify the other addresses for the service of documents. LLP Form No. 12 is pursuant to Rule 16(3) of Limited Liability Partnership Rules, 2009. The same would be an e-Form and not a physical one.

LLP Form 12 Content

• Field 1, 2, and 3 concern the general details regarding the Limited Liability Partnership (Limited Liability Partnership Identification Number (LLPIN), Name of the Limited Liability Partnership, Address of Registered Office of the Limited Liability Partnership, and E-mail ID).
• Field 4 information through the address declaration excluding the address of its enrolled office. The information of the address excluding the address of the enrolled office must be inserted in this field.
• Field 5 is concerned with the information for which approval of all the partners is chosen as sub-rule (2) of rule 16 and attachments.
• Verification.
• A digital signature, (the e-form must be digitally signed by the designated partner of the LLP).

Form 12 must be certified through the:

• Charted Accountant (in whole-time practice)
• Cost Accountant (in whole-time practice)
• Company Secretary(in whole-time practise) or

Either any one individual must be digitally signed in the e-form.

LLP Form 12 Attachments

• Proof of Address. (It is compulsory.)
• A copy of the minutes of requisite partners’ decision/resolution/consent.
• If relevant, quotes from the Limited Liability Partnership Agreement’s concerning provisions.
• An optional attachment shall be given through any additional info.

LLP Form 15 Effective Date

The effective date for the service of the documents to an LLP on the additional address shown by the LLP beneath rule 16(4) of the LLP rules would not be prior to the filing date of the documents beneath rule 16(3) of the Limited Liability Partnership Rules, 2009.

For instance, when the Limited liability partnership mentioned the address for the service of the documents to (excluding the enrolled office) dated 12th April 2015 and the filing with the registrar is executed on the date 24 April 2015, the date would the date for the services of the documents to the LLP on the additional address shown by LLP.

LLP Form 12 Penalty

When the LLP does not comply with any of the provisions of the same section 13, the LLP and each of its partners would be fined not lower than Rs 2000 but now exceeding Rs 25,000.

Closure

LLP would be shown any additional address for the purpose of service of the documents via the mentioned process beneath Rule 16(2) of the LLP rules 2009. The LLP must notify the registrar for the declaration of the additional address that is excluding the enrolled office in 30 days.