Success Roar Classes

Limited Liability Partnership (LLP)

Limited Liability Partnership (LLP) - Success Roar Classes

What is the meaning of LLP?

Limited Liability Partnership (LLP) Act, 2008

Limited Liability Partnership’ means a partnership formed and registered under this Act.”

Partnership + Company = LLP

What are the features of LLP?

  1. Body Corporate- A LLP is a body corporate formed and incorporated under this Act.
  2. Separate Legal Entity- It is a legal entity separate from that of its partners.
  3. Perpetual Succession- A LLP shall have perpetual succession. Perpetual succession means a change in the existence of partners will not impact the existence of LLP.
  4. Registration- The registration of LLP is mandatory.

Hence, we can say –

“LLP is a body corporate formed and incorporated under this Act with perpetual succession and separate legal entity from its members.”

Limited Liability Partnership (LLP)

What are the differences between an Ordinary Partnership Firm and an LLP?

BasisPartnershipLLP
LawIndian Partnership Act, 1932Limited Liability Partnership Act,2008
RegistrationOptionalMandatory
CreationBy Agreement between partnersBy Law
MembersMin. 2, Max. 50Min. 2, Max. No limit
Who can be MemberWho is eligible to enter a contract? Exception Body corporateAll including body corporate
Separate Legal EntityNoYes
Perpetual successionNoYes
Ownership of AssetOf partners (as the partnership does not have separate existence)Of LLP, not partners
LiabilityUnlimitedLimited

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