Prelims Level
Mains Level

Why in News?

  • Ministry of Corporate Affairs has launched another process re-engineering by making incorporation of Limited Liability Partnership (LLP) through a complete online system through a web service titled “RUN-LLP (Reserve Unique Name – Limited Liability Partnership)”and an e-form titled “FiLiP (Form for incorporation of Limited Liability Partnership.

New initiatives – Significance:

  • With the initiatives launched by Ministry of Corporate Affairs, one can start business by incorporating a company through an on-line process without visiting any Government office.
  • This was achieved in January, 2016 by establishing Central Registry Centre (CRC) for on-line incorporation of the company and reserving its unique name.
  • Two on-line forms that were introduced for the purpose are Simplified Proforma for Incorporating Company Electronically (SPICe) and Reserve Unique Name (RUN).

What is a Limited Liability Company?

  • A limited liability company is a corporate structure whereby the members of the company are not personally liable for the company’s debts or liabilities.
  • They are hybrid entities that combine the characteristics of a corporation and a partnership or sole proprietorship.
  • In these the liability of each partner is limited to his share as written in the agreement.

RUN-LLP (Reserve Unique Name – Limited Liability Partnership):

  • The Ministry of Corporate Affairs has contributed significantly towards ‘Ease of Doing Business’ in the country with a new initiative.
  • A company can now be incorporated in less than two days along with allotment of PAN, TAN, DIN and Unique Name through the online process.
  • It has launched process re-engineering by making incorporation of Limited Liability Partnership (LLP) through a complete online system.
  • It is web service titled RUN-LLP (Reserve Unique Name – Limited Liability Partnership).
  • Name can be allotted to LLP through an e-form titled “FiLiP (Form for incorporation of Limited Liability Partnership).
Share Socially