Rajya Sabha passes Limited Liability Partnership (Amendment) Bill, 2021

New Delhi : The Rajya Sabha on Wednesday passed a bill which seeks to improve ease of doing business (EoDB) by decriminalising various offences amid Opposition uproar over Pegasus spyware and other issues.

The Limited Liability Partnership (Amendment) Bill, 2021 proposes to introduce the concept of small LLPs in line with the concept of “small company” under the Companies Act, 2013.

Most of the members who participated in the discussion supported the Bill.

BJD MP Sujeet Kumar said that LLP has been a popular structure and that the proposed amendment would further improve the ease of doing business.

Kumar noted that the amendment will help law-abiding LLPs especially in the micro, small and medium enterprises (MSME) sector. Further, decriminalising various offences would decongest the courts which are already under heavy load.

The law-maker suggested to bring tax rates for LLPs at par with the corporates.

K Raveendra Kumar of TDP and M Thambidurai of AIADMK were among the members who supported the amendment and appreciated the government move.

Replying to the discussion on the Bill, Finance Minister Nirmala Sitharaman said that the proposed Bill was a very timely Bill and would help the start-ups.

“It will also help a lot of LLPs which have professionals, Chartered accountants (CAs), cost accountants. All of them will be benefitted by the ease of doing business and also by removing the criminality which is the most important aspect of ease of Doing business. This will bring a lot of positivity in the LLP eco-system,” the Minister said.