LLP Act allows only individuals and body corporates to be partner of LLP. A private limited company is having HUF shareholders also. How can such company be converted into LLP?
20 January 2015
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 can not become designated partner in LLP.
What you can do is transfer the shares from HUF to individual/body corporate before conversion
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