MCA’s New Advisory to Expedite LLP Incorporation Process and Reduce Delays

The Ministry of Corporate Affairs (MCA) has issued a new advisory for stakeholders filing applications for Limited Liability Partnership (LLP) incorporation using the FiLLiP Form. The advisory highlights the applications in which incomplete or incorrect information is provided. Due to which, these applications often have to undergo resubmission, which eventually increases the timeline for process completion by slowing down the approval process. This newly issued advisory aims to help applicants avoid common mistakes when filing the LLP incorporation form to ensure faster approvals.    

The MCA has identified three key areas where applicants must exercise extra caution to ensure a smooth and faster approval. Those are;    

1. Ensure Accuracy and Timeliness of Registered Office Proof

One of the most common reasons for rejecting the LLP incorporation form is discrepancies in the registered office address. MCA has noted that, in many cases, the provided proof of address is either outdated or does not match the form. The submitted address proof must not be older than two months. The details on the proof must also exactly match the information in the incorporation form to avoid resubmission.

2. Meticulously Complete the Subscriber Sheet  

The second common error is related to the subscriber sheet, a crucial document for LLP incorporation. Therefore, applicants are required to accurately fill out the mandatory fields with correct information in this sheet. Errors or incomplete information often result in the resubmission of applications. Consequently, the MCA has advised that the applicants must exercise caution while entering information in the subscriber sheet to avoid unnecessary delays.

3. Adhere to Specific Rules for Conversion Cases

Converting an existing business, such as a private company or partnership firm, into an LLP involves additional compliance steps. The MCA emphasizes that applicants in conversion cases must strictly follow these extra rules.

• Submitting Latest Balance Sheet of existing entity
• Obtaining consent from creditors and members
• Publish newspaper advertisements to inform the public about the proposed conversion.    

Failing to comply with these requirements has led to repeated resubmissions in the past.

By following these key points, the MCA said stakeholders can minimize errors and also the need for resubmissions. It will streamline and expedite the process, benefitting both the applicants and the approving authorities. The ministry has encouraged all those involved in LLP incorporation to carefully check their documents and details before the final submission. 

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