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Can private limited company become designated partner in llp

Rohit (XYZ) (34 Points)

02 June 2016

Hello,

Let's assume there are 2 legal entities - one is a Private Limited Company named ABC Pvt. Ltd. and the other is a LLP named XYZ LLP.

Can ABC Pvt. Ltd. become a designated partner (with 90% holding) in XYZ LLP? The other designated partner in XYZ LLP is an unrelated individual. Does ABC Pvt. Ltd. have to be a NBFC to be able to hold 90% share in XYZ LLP?

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3 Replies

CA Rohit Jain (Practice) (1865 Points)
Replied 02 June 2016

Private limited company have to appoint a nominee to act as designated partner on its behalf.

Sachin (Professional) (80 Points)
Replied 02 June 2016

A company is a legal person and so is competent to
contract. hence, it can become a member of any other company. However, it must be authorised by its
Memorandum of Association to invest in the shares of that company or any other company

Rohit (XYZ) (34 Points)
Replied 02 June 2016

Thank you for the replies. We have appointed a nominee. That is not the issue. We are concerned whether we (Pvt. Ltd. company) will be breaking any NBFC rule by holding 90% of the shares in the LLP?