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:
- Name reservation
- Taking DSC (Digital Signature Certificate)
- 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.