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Inthe wake of successfully initiating Ease of Doing Business reforms byintroducing simplified and integrated procedures like SPICe (Simplified Proformafor Incorporating Company electronically), Reserve Unique Name (RUN) forstarting a business in India, the Ministry of Corporate Affairs has nowlaunched another major reform by way of reengineering of incorporation ofLimited Liability Partnership (LLP).

LLP (Second Amendment) Rules, 2018:

Thenew LLP (Second Amendment) Rules 2018 contains the rules and e-forms requiredto incorporate an LLP in India. Below are the changes which came into existenceafter the said amendment with effect from 2^nd October 2018.

1.     Run-LLP(Reserve Unique Name-Limited Liability Partnership) has replaced the earlierFORM-1 which was used for reservation or change of name of a LLP.

2.      FiLLip (Formfor incorporation of Limited Liability Partnership) has replaced the earlierFORM-2( Incorporation document and subscriber’s statement) and also providethree different services of;

                                 i           Name Reservation

                               ii           Allotment of Designated Partner IdentificationNumber(DPIN/DIN) maximum 2

                             iii           Incorporation of LLP

Theseforms would be processed at a centralized location by the registrar, CentralRegistration Centre under Non-STP for and on behalf of the jurisdictionalRegistrar. This would bring down the processing time to D+1 day same as companyincorporation.

3.      Other Changes:

                                 i           Form 17(Application and statement forconversion of a firm into Limited Liability Partnership (LLP) would beprocessed at Central Registration Centre with Non-STP;

                               ii           Form 18(Application and Statement forconversion of a private company/ unlisted public company into limited liabilitypartnership (LLP) would also be processed at Central Registration Centre withNon-STP;

                             iii           Form 5 (Notice for Change of Name) wouldbe processed at Central Registration Centre under Non-STP mode.

To bring down the processing time.

4.      Precautions to be taken:

                                 i           The same user login ID to be used forRUN-LLP and FiLLiP.

                               ii           Names already approved in Form 1 can beused while incorporating an LLP through FiLLiP.

                             iii           It is advisable to be familiar with theLimited Liability Partnership Rules 2009, as amended, or to consult aprofessional and conduct your own Name and Trade Mark search, (the links forwhich are available under ‘MCA Services’ of the portal).

                             iv           Ensure to attach the No ObjectionCertificates (NOCs)/Central Government approval wherever necessary as per theLLP Rules, 2009.

                               v           In case of conversion of company into LLP,ensure that the proposed LLP name is same as the Company name.

Forany query please ask to Mr. Hemant Paliwal, Managing Partner at: [email protected]

DEEPAK PATHAK

ASSISTANT COMPANYSECRETARY

HPACS TEAM