The Union Cabinet on Wednesday cleared the Limited Liability Partnership (LLP) Amendment Bill to accelerate the “Ease Of Doing Business” campaign of the Government.
Finance Minister Nirmala Sitharaman while briefing the media after the Cabinet meeting, said that the changes are being made in Companies Act, decriminalising many sections and improving the ‘Ease Of Doing Business’ for companies.
“A similar treatment had to be given for LLPs,” she said.
Accordingly, a total of 12 offences are to be decriminalised for LLPs, and three sections will be omitted.
These amendments, she said will bring the LLPs on an equal footing, compared to large companies which come under the Companies Act.
The definition of LLP is also being changed and accordingly individual contribution level of partners is being raised from Rs 25 lakh to Rs 5 crore and turnover from Rs 40 lakh to Rs 50 crore, the minister informed further.