The Government of India has decided to put a stop on new Limited liability Partnership registrations until the 31st of March,2018. This is rumoured to be because apparently, the government has run out of forms. Experts have criticised this move as they believed that in a digital age where everything can be done on the internet, why should India still use the paper system.
However, insiders have stated that the real reason is something else. With much confusion and rumours going around, we take a look at the real reason why Limited liability Partnership registrations have been halted until March 2018.
Reasons why LLP Registration are not taking place
In the existing system, to register a LLP in India, a person needs to apply for a DPIN (Designated Partner identification Number). An application for DPIN is the first step in the whole LLP registration process. The DPIN is applied by filling up the DIR 3 form. Once a company get the Designated Partner identification Number, the name application is filled with ROC and thereafter final incorporation is filed.
The government now wants to merge DPIN registration form with final registration. The aim of doing this is to ease the LLP registration process. It is said that in the new system that is likely to be introduced by April 2018, there will be no DIR 3 required for a new DPIN application and the DPIN need not be applied for separately. Due to these changes, LLP registration cannot take place in India until 31st March 2018.