Recent Amendments and Process Re-engineering Of LLP Incorporation
Major amendments have been made under the LLP incorporation Rules vide Limited Liability Partnership (Second Amendment) Rules, 2018. The Ministry of corporate Affairs (MCA) vide its Notification dated 18th September, 2018 introduced a revamped LLP-incorporation procedure which shall come into force from 2nd October, 2018.
Major highlights of the amended LLP incorporation process includes the introduction of specified LLP-RUN services (similar to RUN service for Company Incorporation) for Reservation of Name for the proposed LLP. Along with LLP-RUN, MCA also introduced Form FiLLiP i.e. Form for Incorporation of LLP. Form FiLLiP is similar to form SPiCe for Company Incorporation.
Among all the amendments under the LLP rules, Following are the major aspect to be considered:
1. RESERVATION OF NAME:
2. Incorporation of LLP
3. Form – 5 (Notice for change of name), Form – 17 (Application and statement for the conversion of a firm into LLP) & Form – 18 (Application and Statement for conversion of a Private Company/Unlisted Public Company into LLP) shall remain same with minor modifications. In the above forms, RUN-LLP SRN to be substituted for Form 1 SRN in relevant field & PAN is allowed to be entered in DSC section.
Other important amendments:
However, there is no further clarification regarding the Filing of LLP Form-3 for LLP Agreement and PAN-TAN registration of the firm. Accordingly, it shall be construed as being unchanged until any further clarification.
It is evident that MCA is introducing such amendments for bring the LLP incorporation in par with the Company Incorporation Procedure and to curb the lags and backdrops which used to arise due to structural variations in the earlier Incorporation procedures.