Strict Regulation of LLPs
Centre plans to regulate LLPs on the lines of Companies Act, 2013
Presented before the Houses and about to be notified.
(i) Govt. is amending Section 67 of LLPs Act, 2008 and imposing sections of Companies Act 2013 on LLPs in public interest.
(ii) Provisions like capping number of partners, authorising Registrar of Companies for inspection and implementation of Accounting Standards will also be applied
(iii) Unlike companies, LLPs cannot be revived currently, so if someone does nefarious activities and closes the LLP, the government had no right to revive it and go behind it. After the amendment is notified, such LLPs can be revived.
(iv) Capping number of partnerships in an LLP, where there is no cap currently.
(v) Increasing rights of RoCs and Govt. taking action against entities which are taking the shield of LLPs Act and hiding their business activities.
(vi) Application of Accounting Standards on LLPs.
https://www.dnaindia.com/business/report-centre-plans-to-regulate-limited-liability-partnerships-on-lines-of-companies-act-2778135
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