Tuesday, October 21, 2025

LLP Name Reservation in India: Law, Procedure, Dos & Don’ts, NIC Codes, Challenges & Solutions

Legal Framework

  • Limited Liability Partnership Act, 2008 – Section 4 governs incorporation and name approval.

  • Limited Liability Partnership Rules, 2009 – Rule 8 governs RUN-LLP (Reserve Unique Name) filing procedure.

  • MCA Circulars / Guidelines – Regularly updated for name approval, restricted words, and professional activity restrictions.

Key Point: Name approval via RUN-LLP is mandatory before filing FiLLiP for incorporation. The LLP’s object/activity description must also align with MCA norms.

Purpose of Name Reservation

  • Ensures uniqueness and prevents confusion.

  • Avoids duplication with existing LLPs, Companies, or trademarks.

  • Helps align name with business activity (NIC Code classification).

  • Provides legal identity for banking, taxation, and contracts.

NIC / Business Activity Codes

  • MCA requires main business activity to be specified at incorporation.

  • NIC Codes (National Industrial Classification) are standardized codes issued by Ministry of Statistics & Programme Implementation (MoSPI) to classify economic activities.

  • Purpose:

    1. Identify primary business sector.

    2. Align LLP incorporation with ROC filings, GST registration, and industry reporting.

How to Use NIC Codes in LLP Formation:

StepDescription
1. Identify Business ActivityDetermine your primary business activity (e.g., software development, trading, manufacturing).
2. Find NIC CodeUse official NIC Code list: MoSPI NIC Codes.
3. Mention in FiLLiP FormDuring incorporation, specify main and other NIC codes; name should ideally reflect primary activity.
4. MCA / ROC AlignmentNIC Code helps MCA classify your LLP correctly and aids in compliance reporting (AOC-4, GST, MSME, etc.).

Example:

  • Business: IT Software Services

  • Proposed LLP Name: “TechNova Solutions LLP”

  • NIC Code: 62011 – Computer programming services

LLP Name Reservation Procedure (Step-by-Step)

StepDescription
1. Check Name AvailabilitySearch MCA portal for existing LLP/Company names.
2. Prepare NIC CodeIdentify primary NIC code for your business activity.
3. RUN-LLP FilingFile Form RUN-LLP with:
• Proposed names (1–2 options)
• LLP activity / NIC code
• Subscriber / Partner details
4. Fee Payment₹200 per submission online.
5. MCA ScrutinyChecks for:
• Name uniqueness
• Trademark conflicts
• Restricted/offensive words
6. Approval / RejectionApproval valid 20 days (extendable once); Name Approval Letter issued.
7. Incorporation FilingFile FiLLiP with:
• Approved LLP name
• Designated partners
• LLP agreement
• NIC code(s) for business activity

Dos and Don’ts

Dos

  1. Check MCA and Trademark databases.

  2. Choose names aligned with NIC code/business activity.

  3. Keep alternative names ready.

  4. Ensure name ends with “LLP”.

  5. File FiLLiP immediately after name approval.

Don’ts

  1. Don’t propose similar/identical names to existing entities.

  2. Avoid prohibited/offensive words.

  3. Don’t use trademarked names without authorization.

  4. Don’t delay filing FiLLiP (approval expires in 20+20 days).

  5. Avoid generic names not reflecting business activity.

Common Difficulties in Name Reservation

DifficultyExplanation
Rejection due to similarityMCA uses phonetic/visual similarity checks.
Trademark conflictMCA may approve, but trademark office may object.
Name not aligned with NIC codeName appears misleading or generic → rejection risk.
Delay in approvalManual scrutiny or technical issues.
Expiry of Name ApprovalFiLLiP not filed in 20 days.

Practical Solutions

ChallengeSolution
Similarity with existing LLP/CompanyUse unique prefixes/suffixes, location/industry-based words.
Trademark issuesPre-search trademarks; get authorization if required.
Name approval delaysFile RUN-LLP early; monitor MCA portal.
Expiry of approvalFile FiLLiP immediately; request extension if needed.
Name not matching NIC codeAdjust proposed name to reflect primary activity.

MCA Best Practices

  1. Conduct MCA and Trademark search before filing.

  2. Keep backup name options (3–5).

  3. Use distinctive, descriptive names aligned with NIC code.

  4. Align business activity and NIC code with LLP name and objectives.

  5. Maintain documentation for restricted words or trademarks.

Quick Checklist for RUN-LLP + NIC Code

  • MCA portal check for name availability

  • Trademark search

  • Identify primary NIC code

  • Prepare 2–5 alternative names

  • Ensure name ends with “LLP”

  • Avoid offensive/prohibited words

  • File RUN-LLP with fee ₹200

  • Monitor approval; download Name Approval Letter

  • File FiLLiP with NIC code and approved name

Key Takeaways

  • Name approval and NIC code selection are crucial for legal and operational alignment.

  • Unique, descriptive, and compliant names increase chances of acceptance.

  • Filing FiLLiP promptly avoids expiry and delays.

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