General Circular No. 2/2016 F.No.1/13/2012 CL-V
Government of India
Ministry of Corporate Affairs
*******
5th Floor, ‘A’ Wing, Shastri Bhavan
Dr. R.P.Road, New Delhi-110001
Dated: 15th January, 2016
All the RDs,
All the ROCs/OLs
All stakeholders,
Subject: Whether Hindu Undivided Family (HUF)/ its Karta can become partner/Designated Partner (DP) in Limited Liability Partnership (LLP).
Sir,
Reference is invited to General Circular No. 13/2013 wherein, in paragraph 2, it has been clarified that as per section 5 of LLP Act, 2008 only an individual or body corporate may be a partner in a Limited Liability Partnership. A HUF cannot be treated as a body corporate for the purposes of LLP Act, 2008. Therefore, a HUF or its Karta cannot become partner or designated partner in LLP’.
- However, the clarification inadvertently does not mention partner in the last sentence of the paragraph quoted above which has been pointed out by a It is hereby clarified that a HUF or its Karta cannot become partner or designated partner in LLP.
- This issues with the approval of the Secretary, MCA.
Yours faithfully,
Sd—
(Kamna Sharma)
Deputy Director
Copy to:
- All Concerned.
- PS to CAM
- PSG to Secretary
- PPS to Additional Secretary,
- PS to DGCoA
- Joint Secretaries/DIIs