The government on Wednesday cleared amendments to the Limited Liability Partnership (LLP) Act, with an aim to decriminalise various provisions under the law and foster the ease of doing business in the country.
The changes, including removing criminal action for failure to comply with provisions of the Act, will help about 2.30 lakh such firms in the country.
With the approval, the total number of penal provisions in the Act will be reduced to 22, the number of compoundable offences will be only seven, the number of non-compoundable offences will be only three, and the number of defaults to be dealt under In-House Adjudication Mechanism (IAM) will be only 12, among others, Finance Minister Nirmala Sitharaman said after the Cabinet meeting.
Sitharaman is also in charge of the Corporate Affairs Ministry, which is implementing the LLP Act.
LLP Act has 81 sections and 4 schedules.
