Limited Liability Partnership is a separate legal entity in which the liability of each partner is limited to the contribution made by the partner. To form an LLP, there should be minimum partners.
Recently, on 18th September, the Ministry of Corporate Affairs, by a notification in LLP (Second) Amendment Rules 2018, has introduced some major amendments under the LLP incorporation Rules to bring the Limited Liability Partnership incorporation in par with the Company Incorporation Procedures. According to the notification issued, the LLP related incorporation forms are likely to undergo process re-engineering shortly. The revamped LLP-incorporation procedure will come into force from 2nd October,2018.
Amendments in LLP Incorporation Procedures:
The key amendments made under the LLP rules include the following:
The Limited Liability Partnership Form that was being used for the purpose of reservation of name is to be replaced by LLP RUN web-form.
Form LLP RUN shall be handled by the Central Registration Center that makes the process centralized.
One re-submission is to be allowed in Form LLP RUN but the re-submission should be made within 15 days’ time from intimation.
The LLP Form 2 which was used for the purpose of getting an LLP registered or for incorporation of LLP is replaced by Form registration/incorporation of LLP shall be replaced by Form FilliP (Form for incorporation of LLP) for incorporating Limited Liability Partnership.
Form FilliP can also be used for Reservation of Name for LLP.
A person can also apply for DIN/DPIN through Form FilliP.
Thus, Form FilliP can also be used as a single form for various purposes including reservation of name, DIN application or for incorporation of LLP.
Two re-submissions are allowed in Form Fillip. The re- submission should however be made within 15 days from intimation each time subject to a maximum of 30 days re- submission period.
Certification of LLP incorporation will be issued by CRC in Form 16 and certification of conversion of LLP will be issued in Form 19.
Another important amendment made is Addendum to Form 2 is replaced by Addendum to FilliP that needs to be filed whenever the number of partners in an LLP exceeds the maximum number as allowed in the eForm, or if details of all the designated partners or partners cannot be provided in form FilliP.
There are some minor amendments made in Form 5, Form 17 and Form 18. These forms were used for the purpose of changing the name of LLP, for application for converting private or Unlisted Public company to LLP and for Application for conversion of the firm to Limited Liability Partnership respectively. Hence, these forms shall also be taken care of.
Certificate of Incorporation of LLP is to be given by CRC in Form 16.
Name of LLP need not necessarily to be indicative of its resources and abbreviation now allowed.
There is no clarification regarding the PAN-TAN application. Therefore, these should be separately applied for.