Govt further eases online incorporation process for LLPs
03 October 2018
The ministry of corporate affairs on Monday launched another process re-engineering of online incorporation of limited liability partnership (LLP) companies through a complete online system.
“From today onwards through a web service titled “RUN-LLP (Reserve Unique Name – Limited Liability Partnership)”, name can also be allotted to LLP through an e-form titled “FiLiP (Form for incorporation of Limited Liability Partnership),” a government release stated.
The online process for incorporating a company allows investors to set up a limited liability company without visiting any government office.
Today, a company can be incorporated in less than two days along with allotment of PAN, TAN, DIN and Unique Name through the online process. With further efforts the ministry plans to limit the time taken for incorporation of a company to just one day.
The ministry had, on 18 September, amended Limited Liability Partnership Rules and these have come into effect from 2 October 2018.
The amendment rules contain the following changes:
- Introduction of a web service titled ‘RUN-LLP (Reserve Unique Name – Limited Liability Partnership)’ replacing the erstwhile Form 1 (Application for reservation or change of name); and
- Introduction of a new integrated form christened FiLLiP (Form for incorporation of Limited Liability Partnership) replacing the erstwhile Form 2 (Incorporation document and subscriber’s statement) combining therein 3 services, ie, Name reservation; Allotment of Designated Partner Identification Number (DPIN/DIN); and Incorporation of the LLP.
This online incorporation system for LLPs was introduced in January 2016 by establishing a Central Registry Centre (CRC) for on-line incorporation of the company and reserving its unique name. Two on-line forms that were also introduced for the purpose, namely, Simplified Proforma for Incorporating Company Electronically (SPICe) and Reserve Unique Name (RUN).
As part of online process for company incorporation, PAN and TAN are issued on near real time basis by integrating online process with the department of Income Tax. Through process re-engineering, DIN is also allotted to the individuals at the time of their appointment as director in the company.
Every week, around 2,700 companies are incorporated through online company incorporation system, according to statement issued by the ministry of corporate affairs.
This, the ministry points out, has contributed significantly towards ‘ease of doing business’ in the country.