LLP

This query is : Resolved

sanjay (Querist)
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22 March 2021 Hello All
Pl guide if we make LLP firm then can we do business of financing or loan giving business.
Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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22 March 2021 Better to go for private limited company.

sanjay

sanjay (Querist)
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23 March 2021 Why Sir. Pl guide. Any expert has advised me to make LLP.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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24 September 2021 Currently, the definition of NBFC under the RBI Act does not specifically cover LLPs. Only companies registered under the Companies Act can form NBFCs.

The RBI has been reluctant to grant no objection to investment holding LLPs which has prompted many promoters to set up LLPs as investment-cum-operating entities.