Limited Liability Partnership
The law defines LLP as a “Corporate Business Vehicle that enables professional expertise and entrepreneurial initiative to combine and operate in flexible, innovative and efficient manner, providing benefits of limited liability while allowing its members the flexibility for organizing their internal structure as a partnership”
The LLP shall be a body corporate and a legal entity separate from its partners. Any two or more persons, associated for carrying on a lawful business with a view to profit, may by subscribing their names to an incorporation document and filing the same with the Registrar of Companies, form a Limited Liability Partnership. The salient features of an LLP are as follows:
- An LLP is a body corporate and legal entity separate from its partners. It has perpetual succession.
- Being governed by a separate legislation, the provisions of Indian Partnership Act,1932 are not applicable to an LLP and its regulated by the contractual agreement between the partners.
- It contains elements of a corporate structure as well as the flexibility of a partnership firm
- Liability of partners is limited to the extent of their agreed contribution and individual partners are protected from the joint liability created by another partner’s wrongful business decisions or misconduct.
To register a Limited Liability Partnership click here.