In a major regulatory simplification, the Ministry of Corporate Affairs (MCA) has announced that Limited Liability Partnerships (LLPs) are no longer required to obtain a No Objection Certificate (NOC) from individual state governments to operate business activities across multiple states. This reform, effective from July 2025, is part of the government’s broader initiative to facilitate ease of doing business and eliminate redundant inter-state approvals that previously caused delays and procedural hurdles for LLPs expanding beyond their registered jurisdiction.
Under the revised framework, LLPs incorporated under the central LLP Act, 2008, can now freely carry out operations, open branch offices, or enter into commercial contracts in any state or union territory without seeking state-level NOCs. However, they must ensure timely updation of business addresses in Form 15 and notify the Registrar of Companies (RoC) about any change in operational presence outside the principal place of business. This change aligns LLPs with the operational freedom already enjoyed by companies under the Companies Act, 2013.
This development is expected to greatly benefit startups, professional firms, logistics providers, and e-commerce ventures operating in a multi-state framework. Legal experts have welcomed the reform as a step toward a unified national market, reducing administrative burdens and increasing mobility of businesses. The MCA has also advised LLPs to maintain accurate records of interstate transactions, adhere to local tax and labor laws, and update relevant regulatory filings to remain fully compliant while availing the benefits of this new operational freedom.
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