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CS Executive · Setting Up of Business, Industrial and Labour Laws · Selection of Business Organization

Anand LLP, registered under the LLP Act, 2008, registers itself as a company under Part I of Chapter XXI of the Companies Act (the Part referred to in the provided sections). What is the effect on the LLP upon registration as a company, per the text?

On registration as a company under this Part, the LLP is deemed to be dissolved under the LLP Act, 2008 without any further act or deed. No separate dissolution step is needed and it does not continue in parallel.

  1. AThe LLP continues to exist alongside the company
  2. BThe LLP is deemed dissolved under the LLP Act without any further act or deedCorrect
  3. CThe LLP must separately apply to the Registrar for dissolution after one year
  4. DThe LLP becomes a branch of the company

Explanation

The proviso to section 374 states that upon registration as a company under this Part, an LLP incorporated under the LLP Act, 2008 is deemed dissolved under that Act without any further act or deed. Hence a separate dissolution application or continued existence is not contemplated.

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