Starting an LLP or Company as a Full-Time Employee

Introduction 

Are you a Full-Time Employee and want to start your own LLP or Company but confused about the documentation and procedure then this article will guide you in detail about LLP/Company Registration. In India you can start your LLP/Company even if you’re a full-time employee but make sure your employment contract doesn’t prohibit it. In this blog you’ll get complete insights on LLP/Company registration including its documentation, procedure, time required, etc.

What is LLP & Company Registration? 

A Limited Liability Partnership is a separate legal entity which can enter into agreement with a third party under its own name. LLP has perpetual succession which means it can be continued even after the resignation/retirement/death of a partner. The partners have limited liability which means their liability is only limited capital contributed by them. In case of any debt or liability of an LLP, partners of LLP don’t need to pay from their personal assets. 

A Company Registration either Private Limited Company or Public Limited Company are registered under Companies Act 2013 and the objective of the company is defined under memorandum of association. A private limited company is a business company established by private stakeholders. While a Public Limited Company is a business structure which is owned by the general Public. In India, a private limited company is the most popular type of business structure due to its various advantages, including limited liability protection, ease of formation and maintenance, and separate legal entity status.

Can I start an LLP/Company as a Full-Time Employee? 

If you’re a full-time employee and want to start your LLP or Company in India, then you can start by following some major steps. There are no such restrictions in India to start your own LLP/Company as a Full-Time Employee but make sure their employment contract doesn’t prohibit it and there’s no conflict of interest with their current employer. In order to start your LLP/Company as a full-time employee, you need to gather certain documents and follow some steps to register your company. Let’s discuss these documents and steps in detail. 

Documents Required for LLP/Company Registration for Full-Time Employee

The list of documents to start an LLP or company in India can differ from each other depending on the state. Following is the detailed list of documents required for LLP/Company Registration for Full-Time Employee in detail:

• Identity Proof of Directors & Shareholders 
• Address Proof of Directors & Shareholders or Passport in case of Foreign Director/Shareholders 
• Registered Office Address Proof 
• Passport Size Photograph of Directors/Shareholders 
• Email ID & Contact Number of the Directors/Shareholders for Filing Incorporation Form. 
• Proof of Land Ownership, if in case of rented property NOC from landowner is required. 

Note: If the documents are not in english, then a notarized or apostilled transaction copy shall be attached. 

LLP/Company Registration Procedure for Full-Time Employee 

In order to Register an LLP or a Company in India, the registration procedure differs from each other. Following is the detailed Procedure for LLP/Company Registration: 

• For LLP Registration: 

• Step 01: Obtain DSC & DPIN: Obtain Digital Signature Certificate (DSC) and Designated Partner Identification Number (DPIN) for all designated partners of the LLP. 

• Step 02: Name Reservation: Next you need to reserve the name for your LLP using RUN-LLP form. 

• Step 03: File Incorporation Form: Once you reserve the name, file the incorporation form which is FiLLiP (Form of Incorporation of Limited Liability Partnership). 

• Step 04: LLP Agreement: Once you fill the Incorporation form, all you need to file the LLP Agreement. 
  
  
  

• For Company Registration: 

• Step 01: Obtain DSC & DIN: To start a private limited company first obtain Digital Signature Certificate for all directors and Directors Identification Number for all proposed directors. 

• Step 02: Name Reservation: Once you obtain DSC & DIN, apply for a unique name for your private limited company using SPICE+ Part A (Reserve Unique Name) Form.

• Step 03: Prepare MoA & AoA: After reserving the name, prepare Memorandum of Association (MoA) and Article of Association (AoA) containing the company's objective, rules & regulations. 

• Step 04: File Incorporation Form: Next, all you need to do is file the Incorporation Form i.e, SPICe+ Form (INC-32) to the Registrar of Companies (ROC). 

• Step 05: Fee Payment & Incorporation Certificate: Once you file the Incorporation form, pay the required fee and after successful verification you’ll get your Incorporation Certificate.

Time Taken to Start an LLP/Company by Full Time Employee 

In Order to Complete the LLP/Company Registration around 15-20 working days are required. Following is the detailed table for time taken for each task: 

Conclusion 

Starting an LLP or Company as a full-time employee can be a crucial task as it includes obtaining multiple documents such as DSC, DIN, MoA, AoA, etc. Also, the registration process includes various steps which should be followed accurately. However, before registering for an LLP/Company as a Full-Time Employee it is crucial to check your employment contract as it should not include any restriction and there’s no conflict of interest with their current employer. The registration process of LLP and Company is usually similar and the time taken to get the Incorporation Certificate is around 15-20 days. 

Frequently Asked Questions (FAQs) 

1) Can I Start my LLP/Company as a Full-Time Employee? 

Yes, You can start your LLP/Company as a Full-Time Employee if your company employment contract doesn’t prohibit it. 

2) Can a salaried person do business?

Yes, a salaried individual can have business income if there’s no conflict of interest with their current employer. 

3) How much time does it take to register a LLP or a Company? 

It usually takes 15-20 working days to get the Incorporation Certificate for your LLP or Company. 

4) Is there any specific requirement to start an LLP or Company as a Full-Time Employee? 

Yes, if you are a full time employee you might have to submit your employment contract for any clause that might prohibit such activities.