Limited Liability Partenership
LLP Registration is a new type of business that combines the benefits of a corporation and the flexibility of a partnership firm into a single entity. The Limited Liability Partnership Act of 2008, which established the concept of LLP in India, was passed in 2008. This one-of-a-kind hybrid is ideal for small and medium-sized organisations.
In India, managing and forming a Limited Liability Partnership is quite simple. A minimum of two partners is necessary to form an LLP, but there is no upper limit. The Partners’ rights and responsibilities are outlined in the LLP agreement. In an LLP, one partner is not liable for the wrongdoings or negligence of the other.
Features of LLP
• It has a separate legal entity just like companies.
• The liability of each partner is limited to the contribution made by the partner.
• The cost of forming an LLP is low.
• Less compliance and regulations.
• No requirement of minimum capital contribution.
The minimum number of partners to incorporate an LLP is 2. There is no upper limit on the maximum number of partners of LLP. Among the partners, there should be a minimum of two designated partners who shall be individuals, and at least one of them should be resident in India.
The rights and duties of designated partners are governed by the LLP agreement. They are directly responsible for the compliance of all the provisions of the LLP Act 2008 and provisions specified in the LLP agreement.