<p>Decriminalising various offences, introducing a new concept of small LLPs and permitting LLPs to issue non-convertible debentures are among the changes being proposed under the Limited Liability Partnership (LLP) Act.</p>.<p>As part of efforts to further improve the ease of doing business, the corporate affairs ministry has sought comments on the recommendations of a high-level committee regarding the LLP Act.</p>.<p>The ministry had set up the Company Law Committee in September 2019.</p>.<p>After studying the existing framework under the LLP Act, the panel has suggested decriminalising 12 offences and shifting them to an in-house adjudication mechanism, and also omitting at least one offence.</p>.<p>The committee has proposed the concept of small LLP as well as provision for LLPs to issue non-convertible debentures.</p>.<p>Comments can be submitted till February 2, the ministry said in a communication on Monday.</p>.<p>Nischal Arora, Partner at Nangia & Co LLP, said that a small LLP is one in which contribution of partners does not exceed Rs 25 lakh and turnover does not exceed Rs 40 lakh.</p>.<p>Such a framework will enable the small LLPs to start making small efforts into reporting and eventually become fully compliant with other laws such as tax and labour laws, Arora added. </p>
<p>Decriminalising various offences, introducing a new concept of small LLPs and permitting LLPs to issue non-convertible debentures are among the changes being proposed under the Limited Liability Partnership (LLP) Act.</p>.<p>As part of efforts to further improve the ease of doing business, the corporate affairs ministry has sought comments on the recommendations of a high-level committee regarding the LLP Act.</p>.<p>The ministry had set up the Company Law Committee in September 2019.</p>.<p>After studying the existing framework under the LLP Act, the panel has suggested decriminalising 12 offences and shifting them to an in-house adjudication mechanism, and also omitting at least one offence.</p>.<p>The committee has proposed the concept of small LLP as well as provision for LLPs to issue non-convertible debentures.</p>.<p>Comments can be submitted till February 2, the ministry said in a communication on Monday.</p>.<p>Nischal Arora, Partner at Nangia & Co LLP, said that a small LLP is one in which contribution of partners does not exceed Rs 25 lakh and turnover does not exceed Rs 40 lakh.</p>.<p>Such a framework will enable the small LLPs to start making small efforts into reporting and eventually become fully compliant with other laws such as tax and labour laws, Arora added. </p>