LLP Name Change

During the course of business, LLP may required to change name to depict the new activities adopted by LLP or to reflect the new brand developed in the market. In both the cases, LLP can change name subject to provision of LLP regulations and LLP Agreement.

Any LLP which is legally registered as per the Limited Liability Partnership Act, 2008 is allowed to change its name at any given time during its working after gaining approval from the appropriate authorities higher up.

Reasons for LLP name change:

• Mergers and amalgamation
• Shift in business activity
• New brand development

LLP Name Availability:

Before commencing the change name process, decide a name and verify the name availability. If the name is available, then an application for Reservation of Unique Name can be made on the MCA portal to reserve the name for a period of 3 months.

Following sections of LLP Act 2008, deals with the change of name:

Directions received from the C.G. (Central Government) (Section 17 of LLP Act, 2008)

• Section 17 of the LLP Act suggests that where the Central Government is satisfied that an LLP has been registered under a name which is identical with or too nearly resembles the name of any other LLP or body corporate or other name as to be likely to be mistaken for it, the Central Government may direct to change its name.
• In such case the LLP shall comply with the direction within 3 months after the date of the notification or such longer period as the Central Government may allow.
• Any LLP which fails to comply with a direction shall be punishable with fine which shall not be less than Rs. 10,000 but which may extend to Rs. 5 Lacs.
• Further, the designated partner of such LLP shall be punishable with fine which shall not be less than Rs. 10,000 but which may extend to Rs. 1 Lac.

Suo moto basis (Section 19 of LLP Act, 2008)

• The process related to the change in name of LLP is covered under Section 19 of the LLP Act, 2008 and the LLP agreement filed with the MCA.
• Hence, before starting the process for changing the LLP name, one should verify the LLP agreement to ensure whether or not some process related to alteration of the name is present.
• Most of the LLP agreements will not have any restriction on changing the name of an LLP.
• However, consent from all partners is mandatory to change the name of LLP.

For any reason, if you wish to change your LLP name, there’s a defined procedure to be followed. In case any of the procedure is not followed, Name Change cannot be given effect to, by ROC.