Limited Liability Partnership (Amendment) Bill, 2021

The Rajya Sabha on August 9, 2021, passed the Limited Liability Partnership (Amendment) Bill, 2021 ("Bill"). The Bill seeks to amend the Limited Liability Partnership Act, 2008 ("Act") which regulates limited liability partnerships ("LLPs"). The Bill converts certain offences into civil defaults and changes the nature of punishment for these offences. The Bill, inter alia, coins the expression "small" LLP, provides for appointment of certain adjudicating officers, establishes special courts and intends to promote a start-up ecosystem.

Some of the key features of the Bill include:

1. Decriminalisation of certain offences: The Act regulates the operations of LLPs and makes contravention of certain compliances punishable with a fine only (ranging between two thousand rupees and five lakh rupees). These compliances include failure in: (i) reporting of changes in partners of the LLP, (ii) reporting of change of registered office, (iii) filing of statement of accounts