Bill defines 'small limited liability partnership' with ₹25 lakh contribution cap

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, potentially higher up to 5 crore) and turnover limits (up to 40 lakh rupees, potentially higher up to 50 crore).
• Introduces the definition of 'debenture' as a non-convertible debenture issued by an LLP evidencing a debt and constituting a charge on assets.
• Revises penalties for various contraventions, often changing them from fines to penalties with daily continuing charges (e.g., 100 rupees per day) and specific maximum caps for the LLP and 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 3-month deadline for compliance.
• Omits Section 18 of the principal Act.
• Extends the period for certain provisions from two years to five years (Section 30).
• Empowers the Central Government, in consultation with the National Financial Reporting Authority, to prescribe accounting and auditing standards for LLPs as recommended by the Institute of Chartered Accountants of India.
• Provides for the compounding of offences punishable with a fine only by the Regional Director or authorized officers, with restrictions on compounding repeat offences within three years.

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