Step-by-Step Procedure for LLP Name Change
A Limited Liability Partnership (LLP) is one of the popular forms of business in India. This type of business organization provides flexibility to all partners while running the company. One of the flexibilities is changing the LLP name at any point in time. Changing LLP’s name could be because of merging with another organization, rebranding the existing company, or aligning with a new business. In this blog, you will get to know a simplified process of Step-by-Step Procedure for LLP Name Change, documents required, and legal requirements.
Common Reasons for Changing LLP Name
There are numerous reasons to change the name of a Limited Liability Partnership (LLP). Some of the common reasons are as follows:
- Change in ownership of the business
- Merger or acquisition by another entity
- Rebranding or repositioning the brand
- Business expansion
- Legal conflicts
Legal Framework for Name Change
Important to understand that the LLP name change is governed by:
- Section 19 of the LLP Act, 2008.
- Rule 20 of the LLP Rules, 2009
Step-By-Step Process of LLP Name Change
Step 1: Search for a New Name
The first step lies in changing the name of the LLP, which involves searching for a new name. You can search for a new LLP name on the official website of the Ministry of Corporate Affairs (MCA). Ensure the new name you searched for shall not be similar to the existing LLP name.
Step 2: Pass a Resolution in the Board Meeting
After conducting a name search, the next step is setting up an internal board meeting. Discuss the new name with all the board members and pass a resolution stating the reason for the name change.
Step 3: File Form LLP5 (Notice of Name Change)
This form is mandatory to be filled with ROC within the period of 30 days of passing the resolution at the board meeting. The form must be signed by a designated partner and certified by a professional charted accountant (CA) or a company secretary (CS). Once submitted, RoC will review the documents and issue a Fresh Certificate of Incorporation with the new name.
Supporting Documents
- Certified copy of the consent of all partners regarding the name change
- Copy of the minutes of the name change decision
- Copy of the direction received from the Central Government, if any
- Copy of the direction received from the Registrar
Step 4: Execute Supplementary LLP Agreement
Once MCA approves the new LLP name, then amend the original LLP agreement that must reflect a new name. The new agreement must have the stamp and signature of all the partners.
Step 5: File Form LLP 3 (Changes to LLP Agreement)
This form is important to fill out on the MCA’s official website. This form must be filled out within 15 days of receiving ROC’s approval on the name change.
Supporting Documents
- Supplementary LLP agreement
- Certified copy of the consent of all partners
- Notice of name change
Post LLP Name Change Compliance
Once the LLP’s name is changed, you will receive a new certification, the following things must be updated.
- Get a New PAN and TAN: Once your LLP’s name is changed, the next step is to update PAN and TAN. Update these two documents by applying to the income tax department.
- Update Other Documents: After LLP’s name change, update other business documents, including licenses, agreements, permits, business cards, website, and more.
- Issue a Public Notice: An LLP must issue a public notice regarding the new business name among the general public.
Get Started with TaxDunia
Changing the LLP’s name is a seamless and user-friendly process in India. By following the correct process, submitting relevant documents, and getting support from a professional expert, successfully changed the name of the LLP. The process involves getting approval from RoC and MCA to avoid any legal compliances or operational risks. With proper planning and execution, an LLP name can be changed successfully and meet business objectives.
