U/s 5 of Limited Liability Partnership Act, 2008 - Whether Hindu undivided family (HUF)/Its Karta can become Partner/Designated partner (Dp) in Limited Liability Partnership (LLP) - LLP - 13/2013

GENERAL CIRCULAR NO. 13/2013 DATED 29-7-2013 It has come to the notice of the Ministry that some Hindu Undivided Families (HUFs)/Kartas of such families are applying to become partner/ Designated partner (DP) in LLPs and a question has arisen whether a 'HUF' or a karta can be allowed to do so. The matter has been examined in consultation with Ministry of Law. 2. 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. 3. This issues with the approval of Secretary, MCA [F.NO. 1/13/2012-CL-V]