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 stakeholder. 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,
(Kamna Sharma)
Deputy Director
Copy to:
1. All Concerned.
2. PS to CAM
3. PSO to Secretary
4. PPS to Additional Secretary.
5. PS to DGCoA
6. Joint Secretaries/DIIs