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CS Executive · Setting Up of Business, Industrial and Labour Laws · Conversion of Business Entities

Karthik LLP, a limited liability partnership, registers as a company under Part XXI of the Companies Act, 2013 after 15 August 2018. What is the effect on the LLP's status under the LLP Act, 2008?

Upon registration as a company under Part XXI, the LLP is deemed to be dissolved under the LLP Act, 2008 without any further act or deed. No separate winding-up order, parallel existence or additional dissolution filing is needed, because the proviso inserted in 2018 operates automatically.

  1. AIt is deemed to be dissolved under that Act without any further act or deedCorrect
  2. BIt continues to exist in parallel with the company until the Registrar of LLPs strikes it off
  3. CIt is dissolved only after a separate winding-up order of the Tribunal
  4. DIt is dissolved only after the partners file Form for dissolution with the Registrar of Firms

Explanation

The proviso to Section 374, inserted in 2018, states that upon registration as a company, an LLP is deemed dissolved under the LLP Act without any further act or deed. Parallel existence, tribunal winding up or separate filings are therefore unnecessary.

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