The rules notified by MCA Notification G.S.R. dated 9th November, 2023, conferred under section 79 of the Limited Liability Partnership Act, 2008, directs to regulate and identify significant beneficial owners in Limited

The Limited Liability Partnership (Significant Beneficial Owners) Rules, 2023 (MCA Notification G.S.R dated November 09, 2023): The Ministry of Corporate Affairs (MCA) has notified "the Limited Liability Partnership (Significant Beneficial Owners) Rules, 2023" which has come into force on the date of its publication in the Official Gazette. The provisions of these rules shall specifically apply to all the Limited Liability Partnerships (LLPs). The aforesaid rules, conferred under section 79 of the Limited Liability Partnership Act, 2008, directs to regulate and identify significant beneficial owners in Limited Liability Partnerships and such individual to make a declaration in Form No. LLP BEN-1. This marks a significant step towards transparency and accountability in LLPs. It establishes clear procedures for identifying, declaring, and managing significant beneficial ownership, ensuring compliance with the Companies Act, 2013. LLPs must promptly adapt to these rules to avoid legal implications and contribute to a more robust corporate governance framework. Following are the important provisions mentioned in rules: The provisions of these rules shall specifically apply to all the LLPs. (Rule 2) Aforesaid rules mentioned various definitions viz, control; majority stake; significant beneficial owner; significant influence; ultimate holding company etc. (Rule 3) Duty of the reporting limited liability partnership to take necessary actions in identifying the significant beneficial owner and causing such individual to file Form No. LLP BEN-1. (Rule 4) Upon receipt of declaration, the reporting limited liability partnership shall file a return in Form No. LLP BEN-2 with the Registrar. (Rule 6) The Limited Liability Partnership shall maintain a register of significant beneficial owners in Form No. LLP BEN-3 and keep it open for inspection during the business hours for such reasonable time as mentioned in the rules. (Rule 7) Rules specified Form No. LLP BEN-4 for notice seeking information about significant beneficial owners. (Rule 8) Provisions related to the filing of application to the Tribunal under certain circumstances. (Rule 9) Provisions related to non-applicability of aforesaid rules to the certain entities. (Rule 10)