Parliament Parliament of India
Corporate Laws (Amendment) Bill 2026 introduces trust-to-LLP conversion and new penalties
This Bill amends the Limited Liability Partnership Act, 2008 and the Companies Act, 2013 to introduce specific regulations for Limited Liability Partnerships (LLPs) operating in International Financial Services Centres (IFSCs) and to allow…
This Bill amends the Limited Liability Partnership Act, 2008 and the Companies Act, 2013 to introduce specific regulations for Limited Liability Partnerships (LLPs) operating in International Financial Services Centres (IFSCs) and to allow specified trusts to convert into LLPs.
Who it concerns: Limited Liability Partnerships (LLPs), specifically those designated as 'Specified International Financial Services Centre LLPs', specified trusts, firms, private companies, and unlisted public companies seeking to convert into LLPs.
What the bill does
- Defines 'Specified International Financial Services Centre LLP' as an LLP set up in an IFSC and regulated by the International Financial Services Centres Authority (IFSCA).
- Requires Specified IFSC LLPs to maintain their registered office in an IFSC and include the suffix 'International Financial Services Centre LLP' in their name.
- Mandates that Specified IFSC LLPs account for partner contributions and maintain books of account in a 'permitted foreign currency' specified by IFSCA, with an option to use Indian Rupees if allowed by IFSCA.
- Allows specified trusts (registered by SEBI or IFSCA) to convert into LLPs, with all assets, liabilities, and rights transferring to the new LLP and the original trust deemed dissolved.
- Introduces a penalty of ten thousand rupees for failing to comply with a requisition from the Registrar.
- Allows appeals against decisions of the Registrar under sections 12 or 16 to an officer of the Central Government.
- Permits LLPs or partners to apply for adjudication of penalties instead of court proceedings for certain offences.
Also in the document
- The Bill is an amendment to existing laws (LLP Act, 2008 and Companies Act, 2013).
- It introduces a new penalty provision for non-compliance with Registrar requisitions.
- It creates a mechanism for converting specified trusts into LLPs.
- It allows for the adjudication of penalties as an alternative to court complaints for certain offences.
Where this bill is now: Introduced
How this was written
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The original document
Parliament of India — Bills (Lok Sabha & Rajya Sabha)
Bill / law · Ref. 85 · 23 Mar 2026
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