Characteristics and Nature of Limited Liability Partnership(LLP)

A Limited Liability Partnership, popularly known as LLP, combines the advantages of both the company and Partnership into a single form of organisation. It is a renowned and accepted business worldwide. This business structure is already popular in countries like USA, UK, Singapore, Australia, etc. The Limited Liability Partnership Act, 2008 was enacted by the Parliament of India to introduce and legally sanction the concept of LLP in India. The Limited Liability Partnership (LLP) Bill, 2008 received the approval of the Cabinet on 1^st May 2008. Both Houses of Parliament passed the bill. The Bill then received the assent of President on 7^th January, 2009. In India, The Limited Liability Partnership Act, 2008 was published in the official Gazette of India on January 9, 2009 and has been notified with effect from 31 March, 2009.

Characteristics of LLP

1. LLP is a body corporate having separate legal entity and perpetual succession.
2. Every LLP shall have at least two partners and there is no limit for the maximum number partners.
3. LLP can be formed to carry on any lawful business.
4. Every LLP shall have at least two Designated Partners and at least one of them shall be a Resident of India.
5. Any change in the partners of an LLP shall not affect the existence, rights and responsibilities of the limited liability partnership.
6. The provisions of Indian Partnership Act, 1932 shall not apply LLP.

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.(Sec. 3).

Every partner of a limited liability partnership is , for the purpose of the business of the limited liability partnership, the agent of the limited liability partnership, but not of other partners (Sec. 26).

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Dr. Deepak Miglani, Email Id.:- legalbuddy@gmail.com