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 and compliance.

Limited Liability Partnerships (LLPs), their partners, designated partners, and the Central Government.

• 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.

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