LIMITED LIABILITY

PARTNERSHIP
 A Limited Liability Partnership (LLP), popularly
known as LLP, combines the advantages of both the
Company and Partnership into a single form of
organization.

 It is a renowned and accepted business form

worldwide.

 The Limited Liability Partnership Act, 2008 was

enacted by the Parliament of India to introduce and
legally sanction the concept of LLP in India.
Characteristics of LLP
 LLP is a body corporate having separate legal entity and
perpetual succession.

 Every LLP shall have at least two partners and there is no

limit for the maximum number of partners.

 LLP can be formed to carry on any lawful business.

 Every LLP shall have at least two Designated Partners

and at least one of them shall be a Resident of India.

 Any change in the partners of an LLP shall not affect the

existence, rights and responsibilities of the limited
liability partnership.
Nature of LLP
A Limited Liability Partnership is a body corporate having
separate legal entity and perpetual succession. Any change
in the partners of LLP shall not affect the existence, rights
or liabilities of the Limited Liability Partnership.

Every partner of a limited liability partnership is, for the

purpose of the business of the limited liability partnership,
but not of other partners.
Incorporation of LLP in India
Deciding the Designated Partners and Partners for LLP formation

Obtaining Director Identification Number & Digital Signature

Certificate of the Designated Partners

Filling application to the Registrar for approval of the proposed

name of LLP

Drafting LLP Agreement Filing & Incorporation Documents with

the Registrar

Obtaining Certificate of Incorporation of LLP

Registration of LLP
1. When the requirements imposed by clauses (b) and (c) of sub-
section (1) of Section 11 have been complied with, the
Registrar shall retain the incorporation document and, unless
the requirement imposed by clause (a) of that sub-section has
not been complied with, he shall within a period of 14 days—

(a) register the incorporation document; and

(b) give a certificate that the limited liability partnership is
incorporated by the name specified therein.

2. The Registrar may accept the statement delivered under clause

(c) of sub-section (1) of Section 11 as sufficient evidence that
the requirement imposed by clause (a) of that sub-section has
been complied with.
3. The certificate issued under clause (b) of sub-section (1)
shall be signed by the Registrar and authenticated by his
official seal.

4. The certificate shall be conclusive evidence that the limited

liability partnership is incorporated by the name specified
therein.
Consequences of Registration (Section 14)
On registration, a limited liability partnership shall, by its
name, be capable of—
(a) suing and being sued;

(b) acquiring, owning, holding and developing or disposing of

property , whether movable or immovable, tangible or
intangible;
(c) having a common seal, if it decides to have one; and

(d) doing and suffering such other acts and things as bodies
corporate may lawfully do and suffer.