The government has made the disclosure rules tougher for limited liability partnerships (LLPs), which will now be required to maintain a register of partners with details of their beneficial interests and both tangible and intangible contributions.
According to the Limited Liability Partnership (Third Amendment) Rules, 2023, notified by the Ministry of Corporate Affairs (MCA), even upcoming LLPs have to maintain such a register, at their registered offices, within 30 days of incorporation. The new rules came into force on October 28.
The move, aimed at improving transparency in the way LLPs operate in the country, comes just when a record number of companies and such partnership firms are getting incorporated this fiscal year.
The contributions must indicate their “tangible, intangible, movable, immovable or other benefit to the limited liability partnership, including money, promissory notes, other agreements to contribute cash or property, and contracts for services performed or to be performed, with monetary value and any other interest, if any”.
The new rules say a partner who does not hold any beneficial interest in contribution must state so in a filing with the LLP within 30 days of his name being featured in the register of partners.
At the same time, those who don’t feature in the register as partners but hold beneficial interests in contributions of the LLP must declare so in 30 days. They have to specify the nature of their interest and particulars of the partners in whose names their contributions stand registered in the LLP’s books.
The LLP must record partners’ declarations in the register in 30 days. Moreover, every LLP has to specify a partner who will be responsible for the furnishing of information about beneficial interests to the Registrar of Companies or other authorised offices.
Until such a partner is designated by an LLP, every partner will be responsible for furnishing such information.
India added a record number of companies and LLPs in the first half of this fiscal year, reflecting growing optimism about the country’s business climate. As many as 120,966 companies and LLPs were incorporated between April and September, up 11.4% from 108,583 a year before, acc ..
Source Name : Economic Times