Procedure for incorporation of llp.

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Nidhi Thakkar (Querist)

29 August 2011 Hi everyone....

Pls guide me with the Procedure for incorporation of LLP which will be involve in the business of trading in stocks.

Prior approval of RBI is required to incorporate LLP involve in business of trading in stock....

I want to know the exact procedure of getting the approval from RBI...

Pls help on urgent basis.

Regards,
Nidhi Thakkar

CS Mitesh Mehta

CS Mitesh Mehta (Expert)

09 September 2011 Note 7 of Form 1 under LLP Rules, 2009 amended vide notification dated 20-01-2010 that ” in principle approval" of RBI is required for NBFC activities. As per RBI Act, 1934 trading in shares/securities is a NBFC activity irrespective of public borrowing/deposits and for these activities only company as business format is permitted. In LLP you can do this business only when RBI grants in-principle approval that it will regulate the NBFC activities of LLP after incorporation.

Nidhi Thakkar

Nidhi Thakkar (Querist)

11 September 2011 Thankz Mitesh,

Can u guide me with procedure for taking in-principal approval?

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