HUF or its Karta cannot become a partner or designated partner in LLP

In a circular dated January 15, 2016, Ministry of Corporate Affairs clarifies to a stakeholder who pointed out that in the General Circular no. 13/2013, the last sentence of the paragraph (quoted below) of the circular does not give a  mention of the Partner. In General Circular 13/2013, it has been quoted that “as per section 5 of LLP Act, 2008, only an individual or body corporate can become a partner in a Limited Liability Partnership. An HUF cannot be treated as a body corporate for the purpose of LLP Act, 2008. Therefore, HUF or its Karta cannot become a partner or designated partner in LLP.”

The Ministry therefore while clarifying to the stakeholder stated that HUF or its Karta cannot become a partner or designated partner in LLP.

-Ministry of Corporate Affairs

 

General Circular No. 2/2016

General Circular No. 13/2013

Join the discussion

Your email address will not be published. Required fields are marked *

two + 2 =