No LLP can be Registered till the 31st March 2018 due to DPIN

If you are considering registering an LLP Firm in India then you need to pay attention to this news that focuses on LLP Registration.As per the Government, LLP registration has been adjourned due to upgradation of existing forms and thus, if you want to start a new LLP, then you will have to wait till 31st March 2018 for the Llp Registration to resume.

First, let me give you a short introduction of LLP Firm, A LLP is short for Limited Liability partnership.A limited liability partnership or LLP is a type of partnership organization in which few or all partners have limited liabilities. Thus, it displays the aspects of partnerships and corporations. In a Limited Liability partnership, the partner is not responsible or accountable for another partner's misbehavior or carelessness. An LLP is governed by LLP Act 2008 in India.

Advantages of LLP

●     Separate legal entity: This means that it has assets in its own name and can sue and be sued.
●     No owner/manager distinction: An LLP has partners, who are own and they control and manage the business.
●     Flexible agreement: The partners are free to draft the agreement as they want, with reference to their rights and duties.
●     Limited liability: The liability of the partners is limited to the extent of his/her contribution to the Limited Liability Partnership.
●     Fewer compliance requirements: An LLP is much easier and cheaper to run than a private limited company as there are just three compliances per year.
●     Easy to wind-up: Not only is it easy to start LLP, it’s also not difficult  to wind-up or close down the operations of  an LLP

Now I will tell you why LLP registration is stopped until 31st march 2018.

Why is LLP Registration not taking place?

To register a Limited Liability Partnership, the person needs to make an application for a DPIN or Designated Partner identification Number number to commence the process. Application for DPIN is the first step to begin the LLP registration process. The DPIN is applied via DIR 3 form. Once DPIN is allotted, the name application is filled with ROC and thereafter final incorporation is filed.

To ease the process of LLP registration, the government proceeds on to merge the DPIN registration form with final registration, so that DPIN should not be applied separately. So government withdraws the form DIR 3 (for new DPIN application) without updating the existing LLP incorporation forms.

As a result, new DPIN cannot be applied and hence, LLP registration cannot take place in India until 31st March 2018