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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.

To more about limited liability partnership click here

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