Company Law - HUF Cannot become partner in LLP
IN Circular No.13/2013, dated 29.07.2013, the Ministry of Corporate Affairs on a question whether a 'HUF' or a karta can become partner or Designated partner (DP) in LLPs, had clarified '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 designated partner in LLP'.
The clarification stated that an HUF cannot become a designated partner, but it did not mention that the HUF cannot become a partner.
Now the Ministry states that the word 'partner' was inadvertently missed and clarifies that a HUF or its Karta cannot become partner or designated partner in LLP.
MoCA General Circular No. ., Dated: January 15, 2016