LLP Act, 2008

• LLP


  Limited Liability Partnership
• Limited liability


  Liability of the partners is limited to their contribution
• Body Corporate is defined in Section 2 (1) (d) of the Companies Act, 2013
• Includes companies registered under this Act
• Includes any other body corporate but does not include a co-operative society
• Business


  Includes trade, profession, service, and occupation
• Designated Partner


  Any partner designated as such pursuant to Section 2(1)(j)
• Foreign LLP


  LLP formed, incorporated outside India
• Minimum number of partners

  Every LLP shall have at least 2 partners
• If reduced below 2, the LLP carries on business for more than 6 months, the person who is the only partner shall be liable personally for obligations incurred during that period
• Resident of India


  A person who has stayed in India for not less than 182 days during the financial year
• Characteristics of LLP


  • Separate legal entity
  • Perpetual succession
  • Limited liability
  • Mutual agency
  • Minimum and maximum partners
  • Business for profit only
• LLP is an artificial legal person created by a legal process
• Partners are entitled to manage the business, but only designated partners are responsible for legal compliances
• Advantages of LLP


  Easy to form<|>Operates on basis of agreement<|>No minimum capital requirement<|>Faces less compliance burden<|>Provides flexibility in legal compliances<|>Partners have limited liability<|>Dissolution procedures are easy
• Incorporation of LLP


  1. Documents submission

  2. Filing of documents

  3. Registration

  4. Issuance of incorporation certificate

  5. Registered office establishment
• Documents must include name of LLP, proposed business, and address of registered office
• Compliance Statement must be made by an advocate, CS, CA, or CWA engaged in the formation of LLP
• Registrar shall retain the document and issue the incorporation certificate within 14 days
• Effect of Registration


  LLP shall be capable of suing and being sued, acquiring and disposing of property, and having a common seal
• Name of LLP


  Must include the words "Limited Liability Partnership" or "LLP"
• A person may apply for reservation of name with a fee to the Registrar
• Registrar may reserve the name for a period of 3 months
• LLP shall give notice of change of name to the Registrar within 30 days