LIMITED LIABILITY PARTNERSHIP (LLP) NEW RULES AND PROCEDURE

LIMITED LIABILITY PARTNERSHIP (LLP) NEW RULES AND PROCEDURE

Limited Liability Partnership (LLP) is a new form of corporate entity; it is a partnership in which partners have limited liabilities. LLP is regulated under Limited Liability Partnership Act, 2008 and registered with Central Government under the Ministry of Corporate Affairs (MCA).

As on 26th January 2018, the application for allotment of Designated Partner Identification Number has been closed due to making amendments in the forms of LLP. But as on 2nd October 2018, the government came up with the new forms and changes in the incorporation procedure of LLP.

  • Before 2nd October 2018 we need to file a separate form i.e. FORM-1 for name reservation in which we can apply six names in one application but now we can apply only two names in one application which is now converted into web-services i.e. RUN-LLP.
  • Earlier after name approval but before incorporation the partners need to take DPIN/DIN but now there is no such provision is applicable. Now those persons can also apply for the LLP registration without having DIN/DPIN because the partners can apply for their DPIN/DIN in the same incorporation form which is now get changed into FiLLiP from FORM-2.
  • Now there is only there step to incorporate an LLP:
  1. Name reservation
  2. Taking DSC (Digital Signature Certificate)
  3. DPIN/DIN and Incorporation of LLP
  • There is not only changes in the incorporation form and process but also get some changes into another form and these are:
  • Addendum to FORM 2 which is for the details given in respect of designated partner and partners of LLP which is not provided in the corresponding form FiLLiP which is now get replaced by the form Addendum FiLLiP. The SRN of Form 1 is substituted with the RUN-LLP SRN.
  • FORM 5 remains the same form only after making a few amendments in it. The SRN of FORM 1 is also allowed to pre-fill in the FORM if it is approved by the MCA before this notification but the FORM 5 still not filed and if the form is filed it will remark as re-submission and the applicant need to file the new forms.
  • FORM 17 is application and statement for conversion of a firm into LLP is also remains the same by making a minor modification in the form.
  • FORM 18 is the application and statement for conversion of a private company/ unlisted public company into LLP, this form also remains the same only a few amendments are made in the form.

 NEW RULES FOR FILING LLP FORMS ARE:

  • Maximum two DINs/DPINs is allocated through FiLLiP
  • In case none of the Designated Partners has DIN/DPIN, the form can now be signed by providing PAN details of the Designated Partners.
  • If the name is not applied and approved through RUN-LLP, the user can apply the name through FiLLiP but the only name is allowed to apply in form FiLLiP.
  • DPIN/DIN/DSC is now no more required for the name reservation.
  • The same user login id which was used for reservation of name through RUN-LLP has to be used for submitting and uploading FiLLiP.

It is advisable to get familiar with the Limited Liability Partnership Rules 2009 along with the amendments made for the incorporation of LLP before applying for the LLP registration so it is always better to take professional assistance for the registration of an LLP.

Want to know more about Partnerships?

Most of the people are interested in the business line and want work on their own. We have seen many partnership firms but the question here arises is what do you know about Partnership? I think the topic is understood, i.e. Partnership. So, in this article, I am going to talk about Partnership and the different types of Partnerships. Let’s begin then.

Starting with the topic, the first thing I am going to talk about is Partnership. Partnership is the collaboration of individuals or parties in order to become partners and run their collaborated work, business, institution etc. All the decisions of the business are taken by the partner altogether and they will bear all the profits and losses equally or according to their share in the company. Not only in business, is partnership seen in other fields too like schools, food chains, hospitals etc.

If we talk about Partnership, then we must emphasize on some of the points in order to make it a successful one. One must ponder over the points which I am going to mention below:

  1. Communication: One of the key factors of a successful partnership is effective communication. In order to discuss and take important business decisions is transparency in communication. It avoids mismanagements of views and opinions between partners.
  2. Focus on the result: Another important point in a successful partnership includes the focus on your goal. Everyone must know the goal of their company, efforts they’ve to put in for that and ultimately the result.
  3. Level of commitment: All the partners should show their full commitment to their work and the level of commitment decides the success of the partnership.

The points mentioned above must be kept in mind in order to have a successful partnership. Moving further from this, now I am going to talk about the last topic of this article that is the Types of Partnerships. In this section, I am going to talk about the three types of partnerships, namely, general partnerships, limited partnerships and limited liability partnerships.

  1. General partnerships: This type of partnership is within the general partners. The responsibilities of the company are equally divided between its partners and all of them are involved in its management. It is considered to be one of the most undesirable kinds of partnerships because of the reason that in a general partnership, if one the partner is sued then the liability will be held by all other partners too.
  2. Limited partnership: In this type of management there are both, general as well as limited partners. Unlike general partnership, the management and responsibility of company in a limited partnership is not divided equally but in a limited manner. It may involve investors for providing fund who are not up for partnership. You can register online for your company or business in a limited partnership. The registration fees may vary from site to site.
  3. Limited liability partnership (LLP): If we compare this type of partnership to others then we will get to know that LLP is a bit different kind of partnership in which all the partners of a company or business have limited liability. Here limited liability means that all the partners have their share of rules and responsibilities, errors, punishments etc. If any of the partners commits a mistake then all the other members will not be liable for that. Everyone has their own limited liability. Many people go for Limited liability partnership registration. You can do the LLP registration online as there are many websites offering company registration.

Concluding the topic I would like to tell you guys then you can register for any of the partnerships. My suggestion will be LLP registration as it will be beneficial for all the partners. You can register on sites which will give you limited liability partnership steps and limited liability partnership registration fees etc. This is my personal choice and you can opt for other options too. What are you waiting for? Go and get your registrations done now!