Limited Liability Partnership (Amendment) Bill, 2021

The Central Government has introduced Limited Liability Partnership (Amendment) Bill, 2021 in the Rajya Sabha on the 30th July, 2021. The Bill seeks to facilitate greater ease of living to law abiding corporates and to decriminalize certain provisions of the Act. The Limited Liability Partnership (Amendment) Bill, 2021, provides for the following:—

1. To introduce the concept of “small limited liability partnership” in line with the concept of “small company” under the Companies Act, 2013;
2. To amend certain sections of the Act so as to convert offences into civil defaults and to convert the nature of punishment provided in the said sections from fines to monetary penalties;
3. To insert a new section 34A so as to empower the Central Government to prescribe the “Accounting Standards” or “Auditing Standards” for a class or classes of limited liability partnerships;
4. To amend section 39 of the Act relating to “compounding of offences” so as to authorize the Regional Director to compound any offence under this Act which is punishable with fine only;
5. To insert a new section 67A empowering the Central Government to establish or designate as many “Special Courts” as may be necessary for the purpose of providing speedy trial of offences under the Act.