New Delhi, Apr 16 (IANS): The Ministry of Corporate Affairs is likely to review and revamp the decade-old Limited Liability Partnership (LLP) framework.

According to reports, the review of LLPs, considered the lowest compliance hybrid between companies and partnerships, comes following representations against a Rs 100 per day penalty for delayed filing and difficulties faced in dissolution of such entities.

The ministry may ask the Registrar of Companies (RoC) to consider revising an office memorandum, which barred LLPs from any manufacturing activity, according to reports. The memorandum had anguished some quarters in the industry and hence was withdrawn.

According to official sources, a committee would be set up to review the LLP framework and look into issues regarding its implementation.

Commenting on the development, Ashok Shah, Partner, N.A Shah Associates LLP, said the memorandum was implemented without any prior notice to companies which created confusion and the sudden withdrawal also created confusion.

"An official communication for the stakeholders is the need of the hour to bring clarity to this matter and for once bring an end to this chaos," he said.