Parliament Parliament of India
Bill sets 25 lakh rupee cap for small limited liability partnerships
This Bill amends the Limited Liability Partnership Act, 2008 to update references to the Companies Act, 2013, define new terms like 'small limited liability partnership' and 'debenture', and revise penalties and procedures for name changes…
This Bill amends the Limited Liability Partnership Act, 2008 to update references to the Companies Act, 2013, define new terms like 'small limited liability partnership' and 'debenture', and revise penalties and procedures for name changes and compliance.
Who it concerns: Limited Liability Partnerships (LLPs), their partners, designated partners, and the Central Government.
What the bill does
- Substitutes references to the Companies Act, 1956 with the Companies Act, 2013 throughout the principal Act.
- Defines 'small limited liability partnership' based on contribution limits (up to 25 lakh rupees) and turnover limits (up to 40 lakh rupees), subject to higher prescribed limits.
- Introduces the definition of 'debenture' as a non-convertible debenture issued by an LLP evidencing a debt.
- Revises penalties for various contraventions, such as failing to file annual returns or complying with section 7, specifying daily penalties and maximum caps for the LLP and its partners.
- Allows the Central Government to direct an LLP to change its name if it is identical or too nearly resembles another LLP, company, or registered trademark, with a three-month compliance period.
- Omits Section 18 of the principal Act.
- Extends the period for certain actions from two years to five years in Section 30.
- Empowers the Central Government to prescribe accounting and auditing standards for LLPs in consultation with the National Financial Reporting Authority and the Institute of Chartered Accountants of India.
- Provides for the compounding of offences punishable with a fine by the Regional Director or authorized officers, with restrictions on compounding repeat offences within three years.
Also in the document
- The Bill is an amendment to an existing Act (Limited Liability Partnership Act, 2008).
- It introduces specific monetary penalties and daily fines for non-compliance.
- It grants the Central Government power to prescribe accounting and auditing standards.
Where this bill is now: Became law (Act)
How this was written
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The original document
Parliament of India — Bills (Lok Sabha & Rajya Sabha)
Bill / law · Ref. XXXI · 4 Aug 2021
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