MCA Circular dated 15th January, 2016 clarification that HUF or Karta can not become Partner or Designated Par ter in LLP

Whether    Hindu   Undivided   Family   (HUF)/   its  Karta   can  become partner/Designated        Partner    (DP)  in  Limited  Liability  Partnership (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.

3.  This issues  with  the approval   of the  Secretary,   MCA.

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