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Practicing Company Secretaries allowed to become designated / active partner of a Limited Liability Partnership

Last updated: 11 February 2015


Dear Professional Colleagues,

The Council at its 227th Meeting held at New Delhi on January 18, 2015 while approving the formation of LLPs by PCS granted general permission to the members in practice to:

(a) become designated / active partner of a limited liability partnership (LLP) the objects of which include carrying out attestation services which fall within the scope of the profession of Company Secretaries irrespective of whether or not the practising member holds substantial interest in that LLP;

(b) become passive partner of LLP which is engaged in any other business or occupation provided that the practising member does not hold substantial interest in that LLP. For the purposes of the above resolution:

(i) “Attestation Services” include Secretarial Audit and Certification of Annual Return in terms of the provisions of the Companies Act, 2013.

(ii) Non-attestation Services” means services which are not attestation services.

(iii) A “passive partner” means a partner of LLP who fulfils the following conditions:

(a) he must not be a designated partner;

(b) subject to the LLP agreement, he may make agreed contribution to the capital of LLP and receive share in the profits of the LLP; and

(c) he must not take part in the management of the LLP nor act as an agent of the LLP or of any partner of the LLP; 

To know more in details, find the enclosed attachment

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