Category Archives: LLP Law

Further Discussion on Manufacturing Activities in LLP


I recently published here a post analysing the law relating to manufacturing activities in a limited liability partnership. I, presently, have a strong view that manufacturing is not permitted under the present framework of the law. The parliament in its wisdom included trading as a permitted business for LLPs but not manufacturing under Section 2(e). According to my views, the Parliament may bring an amendment to include manufacturing as a permitted business for LLP. Any Office Memorandum issued by the Ministry or its withdrawal may not give LLPs permission to do the business of manufacturing without an amendment to the Act.

This blog post generated a debate. In this post, I reproduced a consolidation of all these discussions I was part:

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MANUFACTURING ACTIVITIES IN LLPs


Presently on the website of Ministry of Corporate Affairs, in news and update section following update is displaying prominently –

Manufacturing & allied activities were restricted in LLPs vide OM No. CRC/LLP/e-Forms dated 06.03.2019. This OM invoking the restriction regarding manufacturing & allied activities has been withdrawn with immediate effect.

As this office memorandum is now withdrawn officially we will not refer the same in this post but we will surely discuss the law.

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