Features of Limited Liability Partnership

Limited Liability Partnership is yet another form of Business Organization in India but with a bit of difference from other such forms such as Sole Proprietorship, Partnership, Company, etc.

LLP is an incorporated partnership formed & registered under the Limited Liability Partnership Act, 2008, with limited liability & perpetual succession.

It is a suitable form of business Organization for small & medium enterprises.

Features of LLP

The main features of LLP are:

• LLP is a body corporate and a legal entity separate from its partners. The LLP has a perpetual succession.
• The Rights & Duties of partners of an LLP and those of the LLP and its partners shall be governed by an agreement between partners or between the LLP and the partners.
• The Liability of the partners is limited to their agreed contribution in the LLP which may be tangible or intangible in nature or both tangible & intangible in nature.
• LLP shall maintain annual accounts reflecting the true and fair view of its state of affairs. A statement of accounts and solvency shall be field by every LLP with the Registrar every year.
• The Central government has the power to investigate the affairs of an LLP, if required, by appointment of a competent inspector for the purpose;
• The Indian Partnership Act, 1932 shall not be applicable to LLP’s.
• Every LLP shall have at least two partners and shall also have at least two individuals as Designated Partners, of whom at least one shall be resident in India.