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Download the PDF of the Limited Liability Partnership Act, 2008 and its amendment act of 2021. Learn about the benefits, features and regulations of LLP as a corporate business vehicle.
- Ministry Of Corporate Affairs
Ministry Of Corporate Affairs - LLP Act, 2008 - PDF -...
- Ministry Of Corporate Affairs - llpact
The Limited Liability Partnership Act, 2008. A corporate...
- Ministry Of Corporate Affairs
Limited liability partnership to be body corporate.—(1) A limited liability partnership is a body corporate formed and incorporated under this Act and is a legal entity separate from that of its partners.
- PRELIMINARY.
- NATURE OF LIMITED LIABILITY PARTNERSHIP.
- INCORPORATION OF LIMITED LIABILITY PARTNERSHIP AND MATTERS INCIDENTAL THERETO.
- PARTNERS AND THEIR RELATIONS.
- Introduction
- Limited Liability Partnership
- Historical Development
- Nature and Salient Features of A Limited Liability Partnership
- Partner of A Limited Liability Partnership
- Incorporation of A Limited Liability Partnership
- Conversion to A Limited Liability Partnership
- Investigation of A Limited Liability Partnership
- Limited Liability Partnership (Amendment) Act, 2021
- Whether LLP Can Be A Partner in A Partnership Firm
- GeneratedCaptionsTabForHeroSec
A partnership is usually perceived to be a contract between two individuals for carrying out a business with the objective of profit where the partners have unlimited liability for the acts and omissions of the firm and the other partners. The partnership model was prominent during the medieval period. However, with the advent of the concept of lim...
Section 25 of the Indian Partnership Act, 1932 provides that every partner will be jointly and severally liable for the acts done by the other partners in their capacity as partners. Section 9 of the British Partnership Act, 1890provides that every partner will be jointly liable for the firm’s contract and jointly and severally liable for the firm’...
The concept of LLP was first emphasised by the Committee on Regulation of Private Companies and Partnerships. The Committee, which was known as the Naresh Chandra Committee, stated in its report that the prospect of being a partner was unattractive due to the unlimited liability attached to it. Businesses based on partnerships of professionals coul...
Chapter 2 of the Act deals with the nature of a Limited Liability Partnership. An LLP has the following salient features: 1. Section 3of the Act provides that an LLP has a separate legal identity separate from its partners. It has the capacity to own, acquire, and hold property in its name and to sue and be sued in its name. 2. LLP enjoys perpetual...
As per Section 5of the Act, any person or body corporate can become a partner in an LLP. Thus, both natural as well as legal persons, can be partners in an LLP. Section 5 provides the conditions upon which a person may be disqualified from being a partner in an LLP. If a person becomes insolvent or a court of competent jurisdiction declares him to ...
In order to start an LLP, it is essential to register the establishment under the Limited Liability Partnership Act, 2008. The following steps must be followed to register an LLP: 1. Section 11provides that an LLP is incorporated by filing the incorporation document with the Registrar of the State in which the LLP plans to establish its registered ...
Chapter X of the Act envisages three types of conversion to a limited liability partnership. Conversion can be defined as a process of transfer of assets, liabilities, privileges, interests and obligations of the firm or company to the LLP.
Chapter IX of the Act deals with the investigation. Under Section 43, the Central Government is empowered to appoint inspectors for the purpose of carrying out an investigation into the affairs of an LLP. The Central Government can also appoint inspectors if it is of the opinion that the affairs of the LLP are being conducted in a manner that viola...
Start-up LLP and Small LLP
The Limited Liability Partnership (Amendment) Act, 2021, introduced the concept of small limited liability partnerships. The newly inserted Section 2(ta) defines a small LLP as an LLP whose contribution is less than 25 lakhs or whose contribution is less than a higher prescribed amount which is less than 5 crores and whose turnover is less than 40 lakh Rupees or less than a higher prescribed amount which is less than 50 crores. The small LLP should also meet any other prescribed criteria and...
Resident of India
The Amendment also modifies the definition of the expression ‘resident of India’ provided under Section 7 of the principal Act. Subsequent to the Amendment, a resident of India, for the purpose of the Act, would be a person who has lived within the territory of India for a minimum of 120 days in the preceding financial year.
Punishment
Section 30of the LLP Act, 2008 provided that in the event of any fraud committed by the LLP or its partners, the LLP, as well as the partners of the firm who acted fraudulently, would bear unlimited liability. Every person who acted fraudulently or was involved in the fraud will be liable for imprisonment for up to 2 years along with a fine which may extend up to Rupees 5 lakh. However, the Amendment increases the term of imprisonment from 2 years to 5 years. As per Section 21 of the Act, an...
There has been a difference in the opinions of the different High Courts on the issue of whether an LLP can enter into a partnership with an individual.
Learn about the provisions, features, advantages, disadvantages and amendments of the LLP Act, 2008 in India. This article also covers the concept, nature, conversion, investigation and taxation of LLPs.
The Limited Liability Partnership Act, 2008 was enacted by the Parliament of India to introduce and legally sanction the concept of LLP in India.
Created Date: 1/15/2009 11:52:47 AM
Learn about the act that allows professional expertise and entrepreneurial initiative to combine and operate as a partnership with limited liability. Find the act, rules, circulars and notifications on the official website of the ministry.
