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Limited Liability Partnership Act, 2008

The document discusses the Limited Liability Partnership Act of 2008 in India. Some key points: - It allows for a partnership business where individual partners are not personally liable for the firm's debts and obligations. This combines characteristics of a partnership and a limited company. - An LLP has a separate legal identity and limited liability for partners. It must have at least 2 partners. - The incorporation process involves reserving a business name, filing forms with partner details and consent, and executing an LLP agreement within 30 days. - Advantages include easy establishment, minimum capital, and easy dissolution. Disadvantages include an inability to raise public funds and the potential for personal liability in some cases.

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80 views9 pages

Limited Liability Partnership Act, 2008

The document discusses the Limited Liability Partnership Act of 2008 in India. Some key points: - It allows for a partnership business where individual partners are not personally liable for the firm's debts and obligations. This combines characteristics of a partnership and a limited company. - An LLP has a separate legal identity and limited liability for partners. It must have at least 2 partners. - The incorporation process involves reserving a business name, filing forms with partner details and consent, and executing an LLP agreement within 30 days. - Advantages include easy establishment, minimum capital, and easy dissolution. Disadvantages include an inability to raise public funds and the potential for personal liability in some cases.

Uploaded by

BHAVIK RATHOD
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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LIMITED LIABILITY PARTNERSHIP ACT, 2008

Introduction

The parliament passed the Limited Liability


Partnership Bill on 12th December, 2008 and the
president of India has assented the Bills on 7th
January, 2009. It is called as the Limited Liability
Partnership Act, 2008, and many of its section got
enforced from 31st March, 2009.
Meaning
A Limited Liability partnership popularity know as LLP. LLP is the
combines the partnership and company. In LLP one partner is not
responsible or liable for another partner’s misconduct or
negligence.

LLP has a separate legal entity liable to the full extent of its
assets the liability of the partners would be limited to there
agreed contribution in the LLP.
Characteristic of LLP
 Body Corporate.
 Perpetual succession.
 Separate Legal Entity.
 Mutual Agency.
 LLP Agreement.
 Artificial Legal Person.
 Common Seal.
 Limited Liability.
 Management of Business.
 Minimum & Maximum number of Partners.
 Business for Profit Only.
 Investigation.
 Compromise or Arrangement.
 Conversion into LLP.
 E-Filling of Documents.
 Foreign LLPs.
Advantages
 Separate Legal Entity
 Easy to Establish
 Minimum Capital Contribution
 No Restrictions as to Maximum Number of Partners
 No Requirement to Maintain Statutory Records
Except Books of Accounts
 Easy to Dissolve or Wind up
 Less Cost of Formation
Disadvantages
 LLP can not Raise Fund From Public
 Under Some Cases , Liability May Extend to personal
Assets of Partners
 No Separation of Management From Owner
 An LLP Must have At Least two Members . If one
member chooses to leave the partnership the LLP may
have to be dissolved.
Incorporation Of Limited Liability Partnership

PROCESS

 Deciding Partners and Designated Partners


 Obtaining DPIN and Digital Signature Certificates
(DSC)
 Checking the Availability of Name (up to 6 Choices
can be indicated)
 Drafting of LLP Agreement
 Electronic Filing of Some Documents
 Issuing Certificate of Incorporation along with
LLPIN(Limited Liability Partnership Identification
Number)
Contents of LLP Agreement

 Name of LLP
 Name and Address of Partners
 Form of Contribution and interest on Contribution
 Profit sharing ratio
 Remuneration of Partners
 Rights & Duties of Partners
 Proposed Business
 Rules for governing LLP.
Steps to incorporate LLP
Name Reservation :-
1. The first step to incorporate Limited Liability Partnership (LLP) is
reservation of name of LLP.
2. Applicant has to file e-Form 1, for ascertaining availability and
reservation of the name of a LLP business.
Incorporate LLP :-

1. After reserving a name, user has to file e-Form 2 for incorporating a


new Limited Liability Partnership (LLP).
2. e-form 2 contains the detail of LLP proposed to be incorporated,
Partners’/designated partners’ details and consent of the
partners/designated partners to act as partners/designated partners.
LLP Agreement :-
1. Execution of LLP Agreement is mandatory as per Section 23 of
the Act.
2. LLP agreement is required to be filed with the registrar in e-
Form 3 within 30 days of incorporation of LLP.

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