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Dear Friends,

So everyone is under the impression that incorporating an LLP is no big deal. Now I will express my views on the experience of my client in getting his LLP registered.

After getting DPIN for himself and his 2nd partner, which also involved some delay, he applied for LLP name. Although four names were suggested, and all the names were available, only the fourth mentioned name was approved.

That was not the end of the matter. Now he applied for registration of the LLP and even after expiry of 18 days the LLP was approved.

The reason for this delay is as follows:

1. The subscriber details were filled in the form itself, but no, you must write it by hand as per item 10 of the form, sign, get the witness fill his details by hand, scan, and resubmit the form. Apart from this proof of address was to be provided in the form of ownership documents with NOC.

2. My client duly complied with the request but what happened at the MCA end is not known as the request for subscriber details and address proof was repeated.

3. Now after resubmission of the form another peculiar request was made. The request stated that the subscriber details sheet has not been attached as also the address proof of registered office So resubmit once again. Here my clients experience was a little peculiar in that when an attachment is made the attachments were getting duplicated (probably a bug in the software) and the result of this effort was that at the MCA end there was no attachment for scrutiny. That is another cause for delay.

4. As per the rules, certain time limits have been fixed for each activity to ensure smooth progress of the LLP initiative. So after resubmission of the form there was no approval till the 14th day which is the time limit for approval or rejection. But alas! that was not to be. On the 15th day my client was again asked to furnish address proof in the form of electricity bill or telephone bill. But the means of submitting this was not mentioned. So how do you deal with a department that the Government wants to popularise but which puts hurdles all the way.

I wish to bring this to the notice of my friends as most would have dealt with ROC in company incorporation where a simple form 18 would suffice for address of the registered office with no proofs required, but the case with LLP is different. When the property documents and an NOC from the owner for the LLP to use the address as the registered office is not sufficient, I am at a loss to understand what other document is more authentic/reliable.

Professionals may keep these matters in mind while incorporating an LLP and also make sure that more than one proof be kept ready.
 

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Category Corporate Law, Other Articles by - Arjun Mahadevan 



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