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    Business Law Presentaion

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    Sejal Nakra
    Limited Liability Partnerships (LLPs) are a hybrid business structure that provides the benefits of both a company and a partnership. LLPs allow for limited liability like a company but maintain the flexibility of ownership and operation structure of a partnership. The key features of an LLP include having two or more designated partners who are responsible for compliance, limited liability for partners, and the LLP being a separate legal entity from its partners. An LLP is formed by filing an incorporation document and an LLP agreement with the registrar. LLPs provide advantages over regular partnerships such as separate legal identity, continuity of business on death or retirement of partners, and limited liability for partners.

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    Business Law Presentaion

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    Sejal Nakra
    23 views8 pages
    Limited Liability Partnerships (LLPs) are a hybrid business structure that provides the benefits of both a company and a partnership. LLPs allow for limited liability like a company but maintain the flexibility of ownership and operation structure of a partnership. The key features of an LLP include having two or more designated partners who are responsible for compliance, limited liability for partners, and the LLP being a separate legal entity from its partners. An LLP is formed by filing an incorporation document and an LLP agreement with the registrar. LLPs provide advantages over regular partnerships such as separate legal identity, continuity of business on death or retirement of partners, and limited liability for partners.

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    Limited Liability Partnerships (LLPs) are a hybrid business structure that provides the benefits of both a company and a partnership. LLPs allow for limited liability like a company but maintain the flexibility of ownership and operation structure of a partnership. The key features of an LLP include having two or more designated partners who are responsible for compliance, limited liability for partners, and the LLP being a separate legal entity from its partners. An LLP is formed by filing an incorporation document and an LLP agreement with the registrar. LLPs provide advantages over regular partnerships such as separate legal identity, continuity of business on death or retirement of partners, and limited liability for partners.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    23 views8 pages

    Business Law Presentaion

    Uploaded by

    Sejal Nakra
    Limited Liability Partnerships (LLPs) are a hybrid business structure that provides the benefits of both a company and a partnership. LLPs allow for limited liability like a company but maintain the flexibility of ownership and operation structure of a partnership. The key features of an LLP include having two or more designated partners who are responsible for compliance, limited liability for partners, and the LLP being a separate legal entity from its partners. An LLP is formed by filing an incorporation document and an LLP agreement with the registrar. LLPs provide advantages over regular partnerships such as separate legal identity, continuity of business on death or retirement of partners, and limited liability for partners.

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    © All Rights Reserved
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    of 8

    BUSINESS LAW

    PRESENTAION

    TOPIC : LIMITED LIABILTY PARTNERSHIP; MEANING, FEATURES AND FORMATION

    SEJAL NAKRA
    279/19
    BCOM LLB
    SECTION E
    INTRODUCTION

    • Naresh Chandra Committee Report floated the idea of the introduction of LLP which, it
    described, in a legal perspective, as a hybrid between a company and a partnership, but
    much closer to the private company form.
    • The two primary considerations advanced by the Naresh Chandra Committee for the
    introduction of LLPs in India are the “risk factor” advantage associated with such an
    enterprise and the enhanced global competitive advantage an LLP vehicle will offer to
    Indian professionals like lawyers, accountants, doctors, architects, and company
    secretaries.
    •The Lok Sabha passed the Limited Liability Partnership Bill on 13 December 2008
    thereafter it received the assent of the President on 7 January 2009 and thereby it has
    received legal status as Limited Liability Partnership Act, 2008.
    • The act came into force by way of notification dated 31st march 2009.
    WHAT IS LIMITED LIABILITY
    PARTNERSHIP?

    •The Limited Liability Partnership Act was passed by the Parliament of India in the
    year 2008 for governing the LLP businesses in the country. The Section 2 1 of this
    law states that the LLP is a type of partnership which is registered under this act.
    •A limited liability partnership (LLP) is a formal partnership between at least two
    business partners. Each business partner is provided with limited liability, which
    means they aren’t fully responsible for the business’ debts or liabilities. Partners in
    an LLP aren’t liable for the negligent acts or malpractice of a single partner, each
    partner is accountable for their own negligence.
    • Hence we can say that, LLP means a body corporate and a legal entity separate
    from its partners.
    Click icon to add picture

    FEATURES OF
    LIMITED
    LIABILTY
    PARTNERSHIP
    DESIGNATED PARTNER • WHO CAN BE A DESIGNATED PARTNER IN LLP?

    • Designated partners can only be individuals. Among the

    members of a Limited Liability Partnership, two or more

    partners can be designated as a Designated Partner. In all LLP,

    atleast one of the Designated Partner must be an Indian


    Designated Partners is a concept Resident.
    introduced by the Limited Liability
    • Designated Partners” shall also be accountable for
    Partnership Act, 2008. Designated
    regulatory and legal compliances, besides their liability as
    Partners are similar to
    Directors of a Private Limited C ‘partners, per-se. There must be two designated partners‟ who
    ompany are individuals and at least one of them should be a resident in
    . A Designated Partner in a LLP India. If a body corporate is the partner of an LLP, it can
    when compared to the Director of nominate an individual as a designated partner. Every
    a Company, enjoy more rights and
    designated partner needs to obtain Designated Partner
    priviledges. In this article, we look
    Identification Number (DPIN) from the Central Government.
    at the rights, responsibilies and
    privileges of a Designated Partner The designated partners are responsible for all compliances as

    in detail. required under the LLP Act and are liable to a penalty for

    contravention of those provisions.


    FORMATION OF LLP
    KEY DIFFERENCE BETWEEN LLP &
    PARTNERSHI P

    • LLP is a separate legal entity and therefore, can be sued or it can sue others without involving the
    partners. A partnership firm is not distinct from the several persons who compose it.
    • The partners of an LLP would have limited liability i.e., they would not be liable beyond the money
    contributed by them. Whereas, partners of a firm would have unlimited liability.
    • The retirement or death of a partner would not dissolve the LLP. On the other hand, the death or
    retirement of a partner would dissolve the partnership firm.
    • In a partnership, the property of the firm is the property of the individuals comprising it. In an LLP, it
    belongs to the LLP and not to the individuals comprising it.
    • Whereas a partnership can be formed either orally or by a deed of agreement whether registered
    or not, LLP is formed by an incorporation document and an LLP agreement, thus, giving it a
    legality.
    • Whereas a registered or unregistered partnership cannot have more than 20 partners, LLP can
    have more than that number since no upper limit has been laid down by the Act.
    • An LLP has perpetual succession, i.e., the death or insolvency of a shareholder or all of them does
    not affect the life of the LLP, whereas the death or insolvency of a partner dissolves the firm, unless
    otherwise provided.
    THANK YOU

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