Question 5 (b)
Small LLP
6 marks
- Time to write
- About 12 minutes
- Notes
- Crux notes
Question
Question 5 (b) · 6 marksWhat do you mean by the Small LLP?
Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.
Before you write
Read off the question and its marks
Read from the question
- What do you meanThe meaning first, then the main points.
Write it in this order
- Read; underline the asks; jot your points 1 min
- 1 Definition and thresholds 4 marks 7 min
- 2 Purpose and benefits 2 marks 3 min
- Check: every ask answered, key terms underlined 1 min
Easy marks
- Step 1 opens with the meaning: a one-line definition, the quickest mark in it.
Short on time? Trim steps 1 and 2 evenly rather than skip one: each is capped at its own marks.
Try it first. About 12 minutes for 6 marks. Write it out, then open the solution.
Solution
Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.
Small LLP. Section 2(1)(ta) of the Limited Liability Partnership Act, 2008, inserted by the LLP (Amendment) Act, 2021, defines a small limited liability partnership as an LLP:
- whose contribution “does not exceed twenty-five lakh rupees, or such higher amount not exceeding five crore rupees as may be prescribed; and” (s. 2(1)(ta), inserted in 2021)
- whose turnover, “as per the Statement of Accounts and Solvency for the immediately preceding financial year, does not exceed forty lakh rupees, or such higher amount not exceeding fifty crore rupees as may be prescribed; or” (s. 2(1)(ta), inserted in 2021)
- which meets such other requirements, and fulfils such terms and conditions, as may be prescribed.
Purpose. The category was introduced by the 2021 amendment to reduce the compliance burden on small enterprises: small LLPs pay lower fees and lesser penalties for defaults, which encourages small businesses and start-ups to adopt the LLP form.
Where the 6 marks sit
| # | Component | Marks |
|---|---|---|
| 1 | Definition and thresholds | 4 |
| 2 | Purpose and benefits | 2 |
| Total | 6 |
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