Whether Hindu Undivided Family (HUF)/ its Karta can become partner/ Designated Partner (DP) in Limited Liability Partnership (LLP) - Companies Law - 2/2016

General Circular No. 2/2016 F.No.1/13/2012 CL-V Government of India Ministry of Corporate Affairs 5th Floor, A Wing, Shastri Bhavan Dr. R.P. Road, New Delhi-110001 Dated: 15 th January, 2016 All the RDs, All the ROCs/OLs All stakeholders, Subject: Whether Hindu Undivided Family (HUF)/ its Karta can become partner/ Designated Partner (DP) in Limited Liability Partnership (LLP). Sir, Reference is invited to General Circular No. 13/2013 wherein, in paragraph 2, it has been clarified that as per section 5 of LLP Act, 2008 only an individual or body corporate may be a partner in a Limited Liability Partnership. A HUF cannot be treated as a body corporate for the purposes of LLP Act, 2008 . Therefore, a HUF or its Karta cannot become partner or designated partner in LLP . 2. However, the clarification inadvertently does not mention partner in the last sentence of the paragraph quoted above which has been pointed out by a stakeholder. It is hereby clarified that a HUF or its Karta cannot become partner or designated partner in LLP. 3. This issues with the approval of the Secretary, MCA. Yours faithfully, (Kamna Sharma) Deputy Director