Can a partnership firm become partner in a LLP ?

This query is : Resolved

Share Report Follow Query Ask a Query

FinTax (CA ABHISHEK SINGH)

FinTax (CA ABHISHEK SINGH) (Querist)
Follow

23 November 2024 Hello everyone,

can a partnership firm registered under partnership act become partner in a LLP ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

23 November 2024 Yes, a partnership firm registered under the Partnership Act can become a partner in a Limited Liability Partnership (LLP). Section 5 of the LLP Act specifies that any entity capable of entering into a contract (natural as well as legal persons), including a partnership firm, can become a partner in an LLP.

FinTax (CA ABHISHEK SINGH)

FinTax (CA ABHISHEK SINGH) (Querist)
Follow

18 December 2024 But in Incorporation form in type of body corporate only following options are there : LLP, company, foreign LLP, foreign company, LLP incorporated outside India, Company incorporated outside India.

No option of partnership firm.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

18 December 2024 Yes, based on the options provided for incorporation in the form of a body corporate in India, here are the choices:

LLP (Limited Liability Partnership): Suitable for businesses where partners seek the benefits of limited liability without the formalities of a company.
Company: This could refer to a private or public company limited by shares or guarantee, offering the structure of a traditional corporate entity with shareholders.
Foreign LLP: An LLP that has been incorporated outside India but wishes to operate within India.
Foreign Company: Similarly, this refers to a company incorporated outside India that wants to establish a presence or conduct business in India.
LLP Incorporated Outside India: Specifically for LLPs from foreign jurisdictions looking to operate in India, distinct from a foreign LLP in terms of specific legal recognition or requirements.
Company Incorporated Outside India: For companies from abroad setting up operations in India, this might involve different compliance requirements compared to a foreign company, often involving establishing a branch or subsidiary.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now