In a major regulatory development, the Ministry of Corporate Affairs (MCA) has approved a Fast Track Route for mergers and amalgamations of Limited Liability Partnerships (LLPs), aiming to simplify business restructuring procedures and encourage ease of doing business. Effective from July 2025, eligible LLPs can now complete mergers through a streamlined, tribunal-free process, significantly reducing the time, cost, and complexity traditionally associated with such transactions. This move aligns LLP frameworks more closely with fast-track provisions already available under the Companies Act for small and holding-subsidiary company mergers.

Under the Fast Track Route, LLPs with no ongoing litigation, no pending creditor objections, and those that meet specified financial thresholds (e.g., turnover under ₹50 crore or partner contribution under ₹10 crore) can execute a merger by filing a joint application with the Registrar of Companies (RoC). The process requires approval from three-fourths of the partners of each LLP, consent from secured and unsecured creditors, and publication of a public notice. Upon successful verification, the RoC can approve the merger without requiring National Company Law Tribunal (NCLT) intervention.

This simplified regime is expected to benefit small LLPs, family-run firms, and professional partnerships looking to consolidate operations, optimize resources, or scale up through internal restructuring. Legal experts believe this reform will enhance operational flexibility, promote voluntary compliance, and encourage smoother business exits and integrations. The MCA has also released detailed procedural guidelines and digital filing instructions to assist LLPs in adopting the new route efficiently. Stakeholders view the Fast Track Route as a strategic move to boost confidence in the LLP structure and strengthen India’s entrepreneurial ecosystem.