23 January, 2016

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HUF or Karta of HUF cannot be a Partner in LLP

HUF or Karta of HUF cannot be a Partner in LLP

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'.
 
2. 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.

General Circular No. 2/2016 | 15.1.2016

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