Can Limited Liability Partnership be considered Subsidiary of a Company? - MMJC

Separate entities formed by an apex company (holding company) can be in the form of companies or partnership firm or limited liability partnership (LLP) or any other form, depending on the nature of business of the organization. Due to flexibility in operations and movement of funds, LLP is a preferred option by many corporates. Many times, questions are raised that whether separate entity formed in the nature of LLP can be considered as subsidiary or not?

As per LLP Act, 2008, LLP is a body corporate but does not have features of a company. Hence this question arises that whether LLP would be considered as subsidiary under the Act or would LLP be excluded from the definition of ‘subsidiary’ and what can be implication of this interpretation for compliance of various provisions of the Act.

The Article is written by Mr. Makarand Joshi – Partner of MMJC and Ms. Vrushali Bhave – Senior Manager of MMJC!

The article is Published in the Chartered Secretary of ICSI. The same can be accessed on the following link:

https://www.icsi.edu/media/webmodules/CSJ/September/19.pdf

The Chartered for the month of Sept can be viewed at the following link:

https://www.icsi.edu/cs-journal/icsi-latest-journal-issue/