Updated : May 03, 2024RUN Apply for name reservation of LLP
The name of any business, including Limited Liability Partnerships, is the most significant aspect of its identity. Hence you must not only select the name of your business with utmost carefulness, but also make sure that it is in accordance with all legal and statutory requirements. In this blog, we have not only explained all such guidelines, but have also discussed in detail the process of selecting and reserving the name of your LLP.
The process of reserving the name of an LLP is centered around an application called RUN or Reserve Unique Name. This form is web-based and can be filled out and submitted online. The fact that the form is publicly accessible on the internet has made the process of name reservation quite time and cost effective for Limited Liability Partnership businesses.
What is the Ideal Name for a Limited Liability Partnership?
Naming a Limited Liability Partnership is a complicated layered process. It requires a number of statutory guidelines and principles to be followed, which are mentioned in various significant laws like the Companies Act, the Trademark Act, and the Names and Emblems Act. We have discussed in detail each of these guidelines in the further sections.
In addition to fulfilling all these legal requirements, you must also remember that the name of your LLP should be such that it aptly communicates the brand of your business in the market. For this purpose, you must choose a name that best suits your brand, and suggestively mention the business activity in the name of the LLP itself. A name that mentions both your brand and business activity will provide clarity about the objective of your business to new and existing customers, thereby helping you expand your consumer base.
What are the legal guidelines for naming an LLP?
As mentioned earlier, the legal guidelines for naming a company have been mentioned in the Companies Act, the Trademark Act, and the Names and Emblems Act. You can refer to the table below, where we have briefly discussed all these statutory guidelines, so that you can have a broad idea of the intricacies and complexities that goes into selecting a valid name for your LLP.
| S.No | Laws | Legal Guidelines |
|---|---|---|
| 1. | Companies Act | Name of your LLP should not be same, similar, or deceptively identical to the name of an existing LLP or company |
| 2. | Trademark Act | Name of your LLP should be identical to an applied / registered trademark |
| 3. | Names & Emblems Act | Name of your LLP should not show patronage of or affiliation to the Government |
| 4. | LLP Act | Name of your LLP should end with the words “LLP” |
To understand these guidelines in complete detail, read our dedicated blog on MCA guidelines for name approval of companies and LLPs.
What is the Process of LLP Name Reservation?
With the introduction of the web-based form RUN (Reserve Unique Name), the procedure for reserving new names or changing existing names of companies and LLPs, has become extremely quick, simple, and easy. Through the RUN application, the Ministry of Corporate Affairs has successfully managed to streamline the application and approval process for naming LLPs and companies in India.
After you have selected a name for your LLP in accordance with all the guidelines that we have discussed above, we can begin the process of reserving it with the appropropriate authority. The process of name reservation begins with accessing the RUN application form on the official website of the Ministry of Corporate Affairs. Once you are able to access the web-based form, you must fill out the selected names and submit the application form with the prescribed application fee.
The RUN application gives an option of proposing two names at a time. Upon submitting the application, it reaches the Central Registration Center where its legality is thoroughly examined by the Registrar. After the examination either both the names proposed are found valid, any one of the names proposed are found valid, or none of the names proposed are found valid.
If both names are found to be valid, your first preference will be reserved as the name of your LLP. However, if both names proposed in the application are found to be invalid, you would receive your first chance of resubmission, whereby you can propose two fresh names and resubmit the same application. Even if the names in the resubmitted application get invalidated, you will receive a second chance of resubmission, repeating the same process. Your application will finally get approved or rejected based on the second resubmission of the application.
The name of your LLP will only be reserved if your RUN application has been approved. If your application gets rejected, you shall have to file a new application submitted with a fresh application fee.
What is the Application Fee for Reserving the Name of Your LLP?
The application fee for RUN application is fixed at Rs.1000 per application. However, you must note that once this fee has been submitted, no fresh fee will be charged if the same form is being resubmitted with necessary changes. This fee will only be paid for fresh applications made for reserving the name of the LLP.
Conclusion
We hope that this blog has helped you in understanding the need, conditions, and the process of reserving the name of an LLP. Only after the name of the LLP has been reserved by the Registrar at the Central Registration Center, can an LLP apply for its registration or incorporation. The application for the incorporation of the LLP must be filed within 30 days from the date on which the name of the LLP has been reserved.
