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 specified trusts to convert into LLPs.

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.

• 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.

Written from the document by AI, and checked against it. The original below is authoritative.

The original document