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CS Executive · Setting Up of Business, Industrial and Labour Laws · Limited Liability Partnership

A UK-based LLP wants to set up a place of business in India. Under the LLP Act, 2008, how are the rules for foreign LLPs framed?

The Central Government may make rules on foreign LLPs establishing a place of business in India. Under Section 59, these rules may apply or incorporate, with appropriate modifications, provisions of the Companies Act, 2013, or a prescribed regulatory mechanism.

  1. AThe Central Government may make rules applying or incorporating, with appropriate modifications, provisions of the Companies Act, 2013Correct
  2. BThe State Government may make rules applying the Indian Partnership Act, 1932
  3. CForeign LLPs are barred from establishing any place of business in India
  4. DThe foreign LLP is automatically treated as an Indian LLP without any rules

Explanation

Section 59 empowers the Central Government to make rules on establishing a place of business by foreign LLPs in India, applying or incorporating with modifications provisions of the Companies Act, 2013 or a prescribed regulatory mechanism. The Act does not bar them or leave rulemaking to States.

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