The source of funds are Loan from Partner (As capital contribution is capped at 25Lac unless audited, it's very difficult to get capital out in case of emergencies)
All partners are immediate family.
The business object mentions securities and derivatives for LLPs own account.
Not a PMS or advisory firm, does not collect money from public or Pay profits to partner or anyone
This looks reasonably structured. Using partner loans instead of capital makes sense given the ₹25 lakh cap and the difficulty of capital withdrawal during emergencies. Since all partners are immediate family and the LLP trades solely on its own account, with no public money involved and no profit distribution like a PMS, it doesn’t cross into advisory or fund management territory.
As long as the LLP genuinely operates within these boundaries and keeps clean records, it should remain compliant. Think of it like Geometry Dash Lite—there aren’t many rules, but missing even one jump (like improper profit sharing or public funds) can suddenly end the run.
Chirag P Shah & Co. Chartered Accountant
Pune
B.Com
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MANUJ SHARMA AND COMPANY
Noida
CA Inter
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CCI
Pro
CAclubindia
