GS 3: Economy | Mobilization of resources

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)”
• The Limited Liability Partnership Rules have been amended on 18th September 2018 which would come into effect from 02nd October 2018.

The amendment rules 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).
• 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 i.e.
• Name reservation
• Allotment of Designated Partner Identification Number (DPIN/DIN).
• Incorporation of the LLP

LLP:

• LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership.
• The LLP can continue its existence irrespective of changes in partners.
• It is capable of entering into contracts and holding property in its own name.
• The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP.