Limited liability Partnership (LLP) is a corporate business structure that enables Managerial skills and entrepreneurial capability to join and operate in a workable, innovative and systematic manner, providing benefits of limited liability while permitting its partners the flexibility of organizing their internal structure as a partnership.
A Limited Liability Partnership (LLP) is a separate legal entity where the liability of partners is limited to their agreed contribution. It is governed by the LLP Act, 2008 in India and similar regulations in other countries. Limited Liability Partnership (LLP) is a formal legal process that combines the benefits of a partnership and a private limited company. An LLP offers flexibility in management and operations, while also providing limited liability protection to its partners.
As per sec 2(n) of the Limited liability Partnership (LLP) Act, 2008, Limited Liability Partnership (LLP) means a partnership formed and registered under this act.
1. Separate Legal Entity
An LLP is a body corporate and a legal entity separate from its partners.
2. Limited Liability of Partners
The liability of each partner in an LLP is limited to the extent of their capital contribution.
3. Perpetual Succession
An LLP enjoys perpetual succession, meaning:
4. Minimum Two Partners Required
5. Designated Partners and their Responsibilities
6. No Requirement of Minimum Capital Contribution
7. Flexible Management Structure
8. Taxation Benefits
9. Easy Conversion and Winding Up
10. Profit Sharing Flexibility
11. Statutory Recognition
Tags : LLP Registration
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