The Limited Liability Partnership (Amendment) Act, 2021

Commencement of the Amendment Act

The Amendment Act is set to come into force on the date appointed by the Central Government in the Official Gazette. Different dates may be appointed for the enforcement of different provisions of the Amendment Act.

Key Highlights of the Amendment Act

1. Introduction of small limited liability partnerships ('Small LLP')
   The Amendment Act has introduced the concept of Small LLP which is aimed to be in line with the concept of small companies under the Companies Act, 2013. The Amendment Act has defined Small LLP as a limited liability partnership:

• the contribution of which is up to INR 2,500,000 (Rupees twenty five lakhs) or such other amount as may be prescribed, not exceeding INR 5,00,00,000 (Rupees five crore); and