Growing Popularity Among Professionals • LLPs are increasingly chosen by consultants, startups, and small firms • The structure offers low compliance and high flexibility benefits • Professionals prefer LLPs for joint ventures and shared practices • No dividend...

1. Jindal Cocoa LLP v. Reserve Bank of India (2025) The Bombay High Court addressed the reversal of interest subvention benefits on export credit loans. Jindal Cocoa LLP challenged the interpretation of RBI’s Master Circular on export credit. The court emphasized...

Simplified Regulatory Framework • LLPs are governed by the LLP Act, 2008, with fewer legal formalities • No mandatory board meetings or annual general meetings required • Lesser documentation compared to companies under Companies Act • Flexibility in internal...

Foreign Direct Investment (FDI) in LLPs • FDI is allowed in LLPs under the automatic route in permitted sectors • Sector must allow 100% FDI and have no performance-linked conditions • Investment must be made by way of capital contribution or profit share • LLPs...

Step 1: Obtain Digital Signature Certificate (DSC) • All designated partners must obtain a DSC from a certifying authority • DSC is used to sign and file e-forms on the MCA portal • Required for verification and authentication of online submissions • Class 3 DSC is...

Limited but Continuous Legal Status • A dormant LLP retains its legal identity despite being inactive • It continues to exist under law and can hold property or assets • Liability remains limited to partner contributions even when dormant • Designated partners are...

Audit Planning and Scope Definition • Define the audit objective—general compliance, financial, or statutory • Scope includes filings under the LLP Act, tax laws, labor laws, and GST • Identify the period to be audited (usually the past financial year) • Auditor may...

Appointment of Liquidator • Partners or creditors must appoint an LLP liquidator for winding up • Appointment must be approved by the Tribunal or majority partners • Liquidator must be a registered insolvency professional in some cases • Registrar of Companies (RoC)...

Legal and Consulting Sector Lakshmikumaran & Sridharan LLP – Leading tax and legal advisory firm AZB & Partners LLP – Renowned in corporate legal services nationwide Khaitan & Co LLP – Prestigious law firm with PAN-India presence Desai & Diwanji LLP –...

Decriminalization of Offences • Minor and procedural lapses by LLPs are now treated as civil defaults • Penalties replaced imprisonment in many sections under LLP Act • Helps reduce fear of harsh punishment for non-serious violations • Encourages ease of doing...