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Sunday, October 19, 2014

Trust/trustee as a partner in Limited Liability Partnerships (LLPS) – Clarification


General circular No 37/2014
File No. 2/3/2014 CL-V
Dated 14th October,2014
Subject: Clarification with regard to Trust/ trustee as a partner in the Limited Liability Partnerships (LLPs).
Clarifications have been sought on whether a trust or a trustee representing a trust in the case of “Real Estate Investment Trust” (REIT) or “Infrastructure Investment Trust” (InvITs) or such other trusts set up under the regulations prescribed under the Securities & Exchange Board of India Act, 1992, can become a partner in an LLP.
  1. The matter has been examined in consultation with the Law Ministry and it is clarified that for the purposes of these trusts it is not barred for a trustee, being a body corporate, to hold partnership in an LLP in its name without the addition of the statement that it is a
  2. This issues with the approval of Competent Authority.
Yours faithfully,
Kamna Sharma Assistant Director

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