State small scale industries have demanded support from Union Minister of Corporate Affairs Salman Khurshid for Limited Liability Partnerships (LLPs) as they have alleged that the virtual office for the purpose does not function properly.
LLP is an alternative vehicle for business houses which provides benefits of limited liability but they can organise their internal structure as a partnership based on a mutual agreement basis.
“We face difficulty in getting registered at the LLP virtual office, the website or software has some problem. To check the problem, I personally visited the website and sent my representative at the Delhi office but none responded. None picks up the phone at its call centre nor does anyone respond to our correspondence to the registrar,” president of MP Laghu Udyog Sangh, (an organisation with 1,000 members) RS Goswami said.
The LLP is a new corporate form for SMEs in MP. It provides unlimited personal liabilities and statute-based governance structure of limited liability company. More and more SMEs want to opt for LLP to become more innovative and efficient.
Speaking to Business Standard, registrar Santosh Kumar told over the phone, “LLP software is being improved and it will take three-four months. The companies may face some problem but they can register themselves by taking support of a professional person. Also our helplines are always open, a call centre will start functioning soon.”
He also said of 650 total registrations, 4 were from Madhya Pradesh.
According to Goswami, SMEs in Bhopal, particularly in pharma sector, are eager to opt for the LLP form.
