A limited liability partnership (LLP) is a corporate organisation that is organised similarly to a partnership but provides the advantages of a corporation. An LLP’s partners have limited responsibility to the organisation and are not responsible for the activities of another partner.

The Ministry of Corporate Affairs renamed the Limited Liability Partnership (Second Amendment) Regulations, 2022, after the Limited Liability Partnership Rules, 2009. The Regulations have been changed with the primary goal of making the conduct and processes of business easier. The updated Regulations provide the path for an LLP’s discourse to be scaled up by amending nine Rules and adjusting various forms.

1. New web-based forms for LLP formation- All LLP forms are now web-based, due to the LLP Amendments, 2022. Today, the LLP incorporation procedure, like the SPICe Plus Forms for company incorporation, should only be done using web-based forms. The most notable change brought about by this update is that every LLP must now contain Latitude and Longitude in the Address Block.

2. There is no need to file for a PAN and TAN separately from the incorporation application- The announcement states that the Registrar would provide the Certificate of Incorporation of an LLP on Form 16. On Form 16, the Registrar must provide the PAN (Permanent Account Number) and TAN (Tax Deduction Account Number) issued by the Income Tax Department. This implies that, like with corporations, the creation of limited liability partnerships will now include the PAN and TAN applications. Thus LLPs will no longer need to apply for these separately.

3. Instead of two Designated Partners, there can be five- The LLP Regulations, 2022, make a significant modification in that a maximum must now make the application for the allocation of DPIN of 5 people in the Form FiLLiP. This implies that instead of merely two Designated Partners at the time of formation, there can now be five (without a DIN).

 4. Statement of Solvency and Certificate of Truthfulness by LLP- Under the Limited Liability Partnership (Second Amendment) Rules, 2022, the Statement of Account and Solvency must now be signed on behalf of the LLP by an interim resolution professional, resolution professional, liquidator, or LLP partnership administrator. The DPs in charge of compliances were formerly obliged to sign the Statement of Solvency. The updated regulations now require LLPs with a partner contribution of up to INR 50 lakhs or sales of up to INR 5 crore to file a Certificate of Truthfulness and Correctness of Annual Reports.

 The Ministry of Corporate Affairs’ release of the Limited Liability Partnership (Second Amendment) Regulations, 2022, is a welcoming steps towards easing the procedures of business in India. These modifications will undoubtedly assist firms registering as LLPs in easing the process of LLP incorporation. The adjustments mentioned above have been in effect since April 1, 2022.