On August 10, 2021, the Limited Liability Partnership (Amendment) Bill, 2021 passed by the Lok Sabha. It was passed by the Rajya Sabha on August 04, 2021. The amendment seeks to amend LLP Act, 2008.
Key highlights:
- De-criminalization of procedural & technical defaults under LLP Act, 2008 will incentivize compliance and reduce burden on NCLT and special courts.
- Enhance the confidence of LLPs on the Government’s resolve to reduce the burden on the criminal Justice system
- Provide greater Ease of Doing Business and accord highest respect to honest wealth creators in the country.
- Concept of ‘Small LLP’ and ‘Start up LLP’ introduced in the LLP Act, 2008.
- Provisions of levying additional fees in case of late filings by LLPs rationalised.