Amendment approved in Limited Liability Partnership Act, LLP firms will get benefit

The amendment to the Limited Liability Partnership (LLP) Act was approved on Wednesday. In this, removal of provisions of criminal action for non-compliance of certain rules is prominent.

  • At present the turnover of LLP is 40 lakhs and partner’s participation is limited to Rs 25 lakhs. After the amendment, the turnover limit will increase to Rs 50 crore and partner’s participation will also reach up to Rs 5 crore.
  • Giving information, Finance Minister Nirmala Sitharaman said that at present there are total 24 provisions of punishment in the LLP Act. We have put half of these in the default category. Which has now become 22 provisions of punishment in the LLP Act.
  • Twelve types of violations have been decriminalized in the LLP case. A lot of startups will also benefit from the amendments: Nirmala Sitharaman, Finance Minister

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