MCA Issues Advisory on LLP Incorporation to Reduce Delays
MCA has advised stakeholders to carefully provide office details, complete subscriber sheets, and meet conversion requirements to avoid resubmissions in LLP incorporation applications.
The Ministry of Corporate Affairs ( MCA ) has issued an important advisory for stakeholders filing applications for Limited Liability Partnership (LLP) incorporation through the FiLLiP form.
The ministry explained that many applications face resubmission because of incomplete or incorrect information, which slows down the approval process. The new advisory aims to help applicants avoid common mistakes and ensure faster approvals.
The first key point relates to the registered office details. The MCA observed that in many cases the address proof provided is either outdated or does not match the information entered in the form. Stakeholders must provide valid address proof that is no older than two months to avoid rejection and ensure it is consistent with the details filled in the incorporation form.
The second requirement concerns the subscriber sheet, which is a critical document for LLP incorporation. Applicants are required to complete all mandatory fields in the subscriber sheet with accuracy. Errors or incomplete information often result in resubmission of applications. The MCA has advised that careful attention be given to this step to avoid unnecessary delays.
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The third area of focus is conversion cases. These involve situations where an existing entity such as a company or partnership is converted into an LLP. The MCA has pointed out that such cases require strict compliance with additional rules.
These include submitting the latest balance sheet of the existing entity, obtaining consent from creditors and members, and publishing newspaper advertisements to inform the public about the proposed conversion. Failure to comply with these requirements has led to repeated resubmissions in the past.
By following these simple but essential guidelines, the MCA said stakeholders can minimize errors and resubmissions. This will make the process smoother and quicker, benefiting 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 submitting applications.
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