Can a partnership firm become partner in a LLP ?

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FinTax (CA ABHISHEK SINGH)

FinTax (CA ABHISHEK SINGH) (Querist)
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23 November 2024 Hello everyone,

can a partnership firm registered under partnership act become partner in a LLP ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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23 November 2024 Yes, a partnership firm registered under the Partnership Act can become a partner in a Limited Liability Partnership (LLP). Section 5 of the LLP Act specifies that any entity capable of entering into a contract (natural as well as legal persons), including a partnership firm, can become a partner in an LLP.

FinTax (CA ABHISHEK SINGH)

FinTax (CA ABHISHEK SINGH) (Querist)
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18 December 2024 But in Incorporation form in type of body corporate only following options are there : LLP, company, foreign LLP, foreign company, LLP incorporated outside India, Company incorporated outside India.

No option of partnership firm.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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18 December 2024 Yes, based on the options provided for incorporation in the form of a body corporate in India, here are the choices:

LLP (Limited Liability Partnership): Suitable for businesses where partners seek the benefits of limited liability without the formalities of a company.
Company: This could refer to a private or public company limited by shares or guarantee, offering the structure of a traditional corporate entity with shareholders.
Foreign LLP: An LLP that has been incorporated outside India but wishes to operate within India.
Foreign Company: Similarly, this refers to a company incorporated outside India that wants to establish a presence or conduct business in India.
LLP Incorporated Outside India: Specifically for LLPs from foreign jurisdictions looking to operate in India, distinct from a foreign LLP in terms of specific legal recognition or requirements.
Company Incorporated Outside India: For companies from abroad setting up operations in India, this might involve different compliance requirements compared to a foreign company, often involving establishing a branch or subsidiary.