There have been some news reports in the past referring to some MCA memorandum and stating that LLPs cannot engage in manufacturing and allied activities. I am not able to track the original memorandum. Are these reports true? Link to one such report is below:
Yes, there was some confusion on this issue. MCA has now clarified on its website that this memorandum has been withdrawn with immediate effect.
Thanks, Vin. You are right. The concerned memorandum has been withdrawn. Unfortunately, there does not appear to be a signed/official circular regarding the withdrawal. The Website of MCA (screenshot attached) mentions the fact of withdrawal, though.
The original memorandum was based on a wrong premise that because manufacturing is positively excluded from the definition of ‘business’, LLPs cannot undertake manufacturing activities. The definition of ‘business’ under the LLP Act is an inclusive definition. One cannot make a ‘positively excluded’ argument for an inclusive definition.