General Circular No. 13/2013, Dated 29th July,2013

Sub: Whether Hindu Undivided Family (HUF) / its Karta can become partner/Designated Partner (DP) in Limited Liability Partnership (LLP).


It has come to the notice of the Ministry that some Hindu Undivided Families (HUFs) / Kartas of such families are applying to become partner/ Designated partner (DP) in LLPs and a question has arisen whether a ‘HUF’ or a karta can be allowed to do so. The matter has been examined in consultation with Ministry of Law.

2. 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.

3. This issues with the approval of Secretary, MCA

 F.No. 1/13/2012-CL-V

Yours faithfully

J N Tikku

Joint Director

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Category : Corporate Law (3529)
Type : Circulars (7563) Notifications/Circulars (30685)
Tags : LLP notifications (35) Partnership (25)

0 responses to “HUF or its karta can not be designated partner in LLP”

  1. Anjali says:

    but Karta is an individual, than aslo he cannot be appointed as Patner in LLP

  2. Avani S. Popat says:

    The Circular seems to be a little vague. Throughout the circular it talks about Partner/ Designated Partner, whereas the conclusion given at the end only says that HUF or its karta can not become designated partner in LLP. Does that mean they can be partners in LLP. How do you interpret it as?

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