Thursday 23 June 2016

HUF cannot be a partner in Limited Liability Partnership

Vide General Circular no. 2/2016 dated 15th January, 2016, MCA clarifies that a HUF cannot be a Pertner in a Limited Liability Partnership 

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 can not become designated partner in LLP.