Introduction
LLP Name Reservation Fee : When starting a Limited Liability Partnership (LLP) in India, one of the first steps is to reserve a suitable name for the business. The Ministry of Corporate Affairs (MCA) regulates the process of LLP name reservation through an online platform. The LLP name reservation fee is an essential cost that every entrepreneur must consider while planning their business setup. In this article, we will explore the concept of LLP name reservation, its application process, benefits, limitations, a comparative table with other business entities, and frequently asked questions (FAQs).
What is LLP Name Reservation?
LLP name reservation is the process of securing a unique name for a proposed LLP before its incorporation. This ensures that no other business entity is operating under the same name. The name reservation is governed by the LLP Act, 2008, and is facilitated through the MCA’s RUN-LLP (Reserve Unique Name – Limited Liability Partnership) service.
LLP Name Reservation Fee
The LLP name reservation fee in India is INR 200 per name application. This fee is non-refundable and must be paid while submitting the name reservation request through the MCA portal. The reserved name remains valid for 90 days, within which the LLP must be incorporated. Failure to incorporate within this period results in the name being available for other applicants.
Application Process for LLP Name Reservation
- Login to MCA Portal: The applicant must log in to the MCA (Ministry of Corporate Affairs) website (www.mca.gov.in).
- Select RUN-LLP Service: Under the ‘MCA Services’ tab, choose ‘Reserve Unique Name – LLP’.
- Enter LLP Name Options: Provide up to two name choices in order of preference.
- Justification for Name: Mention the significance of the proposed name and its relevance to the business activities.
- Check Name Availability: Verify the name availability to ensure it does not conflict with existing names.
- Payment of Fee: Pay the INR 200 fee online.
- Review and Submit: Submit the application, and an acknowledgment is generated.
- Approval or Resubmission: If approved, the name is reserved for 90 days. If rejected, reapply with modifications.
Benefits of LLP Name Reservation
- Legal Identity: Securing a name ensures legal recognition and differentiation from other businesses.
- Brand Protection: It helps in establishing brand identity and prevents unauthorized usage of the name.
- Business Credibility: A reserved name gives credibility to stakeholders, investors, and customers.
- Exclusive Rights: Once reserved, no other entity can register under the same name for 90 days.
- Ease of Incorporation: Ensures a smooth LLP registration process without conflicts in naming.
Limitations of LLP Name Reservation
- Non-Refundable Fee: The INR 200 fee is non-refundable even if the name is rejected.
- Limited Name Choices: Only two names can be proposed per application.
- Subject to Approval: The Registrar of Companies (ROC) may reject the application based on similarity with existing names or non-compliance with naming guidelines.
- Validity Period: The reserved name is valid for 90 days, after which a fresh application is required if the LLP is not incorporated.
- Resubmission Costs: If rejected, the applicant needs to submit a new application with an additional fee.
Comparative Table: LLP vs Private Limited Company Name Reservation
| Feature | LLP Name Reservation | Private Limited Company Name Reservation |
|---|---|---|
| Governing Authority | MCA | MCA |
| Application Mode | RUN-LLP Online | SPICe+ Form |
| Fee | INR 200 | INR 1,000 |
| Name Reservation Limit | 90 Days | 20 Days |
| Maximum Name Options | 2 Per Application | 2 Per Application |
| Resubmission Fee | INR 200 Per Attempt | INR 1,000 Per Attempt |
| Approval Time | 2-3 Working Days | 3-5 Working Days |
Conclusion
LLP name reservation is a crucial step in forming a Limited Liability Partnership in India. The nominal fee of INR 200 makes it an affordable process, but applicants must carefully choose a unique name to avoid rejection. While the reservation provides exclusivity for 90 days, ensuring compliance with naming guidelines is key to avoiding unnecessary delays. Comparing LLP name reservation with other business structures like Private Limited Companies highlights the cost-effectiveness and simplicity of the LLP structure. Entrepreneurs should conduct a thorough name search before applying to maximize their chances of approval.
FAQs
1. What happens if my LLP name application is rejected?
- If the LLP name application is rejected, you will need to submit a fresh application with another INR 200 fee.
2. Can I reserve an LLP name for more than 90 days?
- No, the name reservation is valid only for 90 days. After that, it becomes available to the public again.
3. Is the LLP name reservation fee refundable?
- No, the INR 200 fee is non-refundable, even if the name is rejected.
4. How many names can I propose in one application?
- You can propose up to two names per application.
5. Can I change my LLP name after incorporation?
- Yes, but you will have to follow a name change process, which includes obtaining approval from partners and filing a new application with the MCA.
6. How long does it take to get LLP name approval?
- Typically, it takes 2-3 working days, but it may vary based on ROC workload.
7. Can I use a trademarked name for my LLP?
- No, unless you have explicit permission from the trademark owner.
8. Does LLP name reservation guarantee final approval?
- No, name reservation is only an initial step. The final incorporation approval is subject to compliance with all legal requirements.
By understanding the LLP name reservation process and its associated fee, entrepreneurs can efficiently plan their business registration, ensuring a smooth and hassle-free incorporation experience.
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