Withdrawal of restriction on LLPs to carry on Manufacturing activities

The Ministry of Corporate Affairs (the MCA) had earlier issued Office Memorandum (OM) No. to all the Registrar of Companies (the RoCs) dated on 6 March 2019, instructing the RoCs to reject the applications for incorporation of Limited Liability Partnerships (the LLPs) or conversion of entities into LLPs having Manufacturing & allied activities as the business of the LLPs on the ground that manufacturing activities does not fall under the definition of `Business’ as per the Limited Liability Partnership Act, 2008.

Now the MCA has withdrawn the aforementioned OM on such restriction to the LLPs from carrying out manufacturing & allied activities with immediate effect. Consequent to this clarification, LLPs can now carry out the manufacturing & allied activities and entities carrying-out manufacturing & allied activities can also convert themselves into LLP.

Link: http://www.mca.gov.in/MinistryV2/homepage.html

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