HSA Viewpoint
The Amendment Act will encourage small partnerships to convert
into an organized structure of an LLP. The Amendment Act has
essentially brought the Principal Act almost at par with the
framework of the existing Companies Act, 2013 and seeks to
modernize the LLP regime as a whole by introducing ease of
compliance for ethical entrepreneurs and opening gateways to
promote domestic entrepreneurship. In our opinion, the introduction
of Small LLPs and Start-up LLPs will make it more lucrative for
investors, incentivize the start-up community particularly and
promote a healthy business environment.
Additionally, the decriminalization drive and a comparatively
relaxed penalty regime sought to be brought in by the Amendment Act
will provide flexibility to compound minor contraventions thereby,
encouraging compliance by the entrepreneurs and effective
regularization of LLPs, catalyze speedy dispute resolution and
foster the ease of doing business for
