Features of Limited Liability Partnership
Created on 20 Aug 2018
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Updated on 13 Sep 2023
Limited Liability Partnership is yet another form of Business Organization in India but with a bit of difference from other such forms such as Sole Proprietorship, Partnership, Company etc.
LLP is an incorporated partnership formed & registered under the Limited Liability Partnership Act, 2008, with limited liability & perpetual succession.
It is a suitable form of business Organizations for small & medium enterprises.
Features of LLP
The main features of LLP are:
- LLP is a body corporate and a legal entity separate from its partners. The LLP has a perpetual succession.
- The Rights & Duties of partners of an LLP and those of the LLP and its partners shall be governed by an agreement between partners or between the LLP and the partners.
- The Liability of the partners is limited to their agreed contribution in the LLP which may be tangible or intangible in nature or both tangible & intangible in nature.
- LLP shall maintain annual accounts reflecting the true and fair view of its state of affairs. A statement of accounts and solvency shall be field by every LLP with the Registrar every year.
- The Central government has the power to investigate the affairs of an LLP, if required, by appointment of a competent inspector for the purpose;
- The Indian Partnership Act, 1932 shall not be applicable to LLP’s.
- Every LLP shall have at least two partners and shall also have at least two individuals as Designated Partners, of whom at least one shall be resident in India.
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