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Regarding llp

ankamma rao (Manager Accounts) (78 Points)

22 March 2017

Can llp take unsecured loan or not.plz give rly on urgent basis.Thanks in advance

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https://www.legmed.in/2013/06/unsecured-loans-unsecured-debentures-by.H T M L

CA MANISH BINDAL (CHARTERED ACCOUNTANT ) (535 Points)
Replied 22 March 2017

LLP can take unsecured loan from outsiders without any limit. But it should not be interest free loan.

ankamma rao (Manager Accounts) (78 Points)
Replied 22 March 2017

plz provide the section number or any other reference

CA MANISH BINDAL (CHARTERED ACCOUNTANT ) (535 Points)
Replied 22 March 2017

There is not such specific section or provision in Limited Liability Partnership Act 2008. But the act also does not contain any provision which states restriction on accepting unsecured loan from outsiders or from partners. LLP is a corporate version of Partnership Firm and all provisions of partnership firms are applicable on LLP unless and until Limited Liability Partnership Act 2008 states any specific provision. But such loan should not be interest free loan.