The name of the business is a very important part in Limited Liability Partnership Registration as it is not only a name but it is also the face of the business. The name is mentioned everywhere like in the documents, letterhead, pamphlet, banners, board, agreement, etc. The name is approved by the ROC and once it is approved it will be valid till the life of the LLP till its gets changed. The name of the LLP is always ending with the word “LLP” which represents its identity that it is a limited liability partnership which is registered with the MCA. In the current situation, the LLP is a very popular business model in India and it is easy to incorporate and easy to run.
During the course of LLP, the LLP can change its name with the prior consent of the partners or under the direction of the Central Government or there can be any other reason for the name change. The name changing procedure cannot get completed without the approval of ROC. The LLP has to follow the rules or regulations framed under the Limited Liability Partnership Act, 2008 for the name change.
Grounds of Name change:
- On Government Direction: The procedure laid down under section 17 of the LLP Act, 2008
Why: If the Central Government is satisfied that the LLP has been registered with the name which is identical or similar to the name of the existing company or LLP or resembles the registered trademark then the CG may direct LLP to change the name.
WHEN: Once the direction is issued by the CG for the name change then such changes shall be completed within 3 months or such period as may be specified by the CG
CONSEQUENCES: If the LLP fails to comply with the direction then there is a penalty on LLP which shall not be less than Rs. 10000/- but which may extend to Rs. 500000/- and on every designated partner minimum of Rs. 10000/- which may extend to Rs. 100000/-
- On its own (suo-moto): Section-19 of the LLP Act, 2008 has the provisions for the name change with the consent of the partner. But before starting the name changing process the provision to alter the name must be mentioned in the LLP agreement
Why: The LLP can change its name on its own during the following scenario:- Introduction of the new brand
- Changing in the business activity
- On the direction of the partners, etc.
When: Once the partners give their consent for the name change and the name application is filed to the ROC and the name is also approved by them then within 3 months the procedure should be completed.
CONSEQUENCES: If the validity of the name is expired and the procedure is not completed then the name will get cancelled and to start the name changing process a new name application shall be filed and it will cost extra.