Limited Liability Partnership Act 2008 PDF
Limited Liability Partnership Act 2008 PDF
Limited Liability Partnership Act 2008 PDF
By embracing the LLP Act, businesses can enjoy the protection of limited
liability, shielding their personal assets from business liabilities. This
means that in the unfortunate event of any financial issues or legal
disputes, the personal finances of the partners remain separate and
protected.
(a) By Subscription: The persons who have subscribed their names to incorporation document on
the incorporation of a limited liability partnership, and
(b) By Agreement: Any other person may become a partner of the limited liability partnership in
accordance with the conditions and requirements of limited liability partnership agreement.
Features of an LLP
1 Limited Liability Protection
Shield your personal assets from business liabilities, offering peace of mind to
partners.
2 Tax Advantages
3 Flexibility in Ownership
LLPs allow for easy addition or removal of partners without impacting the entity's
existence.
It is a body corporate formed and incorporated under the LLP Act 2008. Every
registered LLP is given an LLP identification number (LLPIN).
5 Perpetual succession
6 Designated Partner
Every LLP shall have at least 2 designated partners. This must be individual persons
and at least one of them shall be resident of India.
7 Partners by Agreement
The partners of a LLP are those who become partners of the LLP in accordance with
the LLP agreement. However, the persons named in the incorporation document
and who subscribe to the incorporation document shall become partners of it.
Key Features of an LLP
Limited Liability Separate Legal Entity Perpetual Succession
Partners are not personally The LLP is an independent Death or resignation of a
liable for the debts or actions legal entity, distinct from its partner does not dissolve the
of the LLP. partners. LLP, ensuring continuity.
Benefits as Compared to
Partnership Firm
Unlimited No. of Partners
Submit the LLP's financial statements and Annual Return with the RoC each year.
2 Statutory Audits
Inform the RoC about any changes in partners' details within 30 days.
Recent Amendments in the LLP Act,
2008
1 Increased Maximum Partners
The LLP Act expanded the range of business activities eligible for LLP
formation.
3 Conversion to LLP
Companies and partnerships can now convert into LLPs to avail of its
benefits.
PROCEDURE OF CONVERSION INTO
LLP
Section 55- From partnership firm ; Section 56- From private company ; Section 57- From
unlisted public
3. Check availability of name through search facility (relevant only for conversion from
partnership firm)
2. Ensure notice of conversion in all official correspondence of LLP for a period of one year
Thank you for your attention!
So, we have explored the various aspects of the Limited Liability Partnership Act, 2008. We discussed
the purpose of the act, the key features of an LLP, as well as the benefits it offers compared to a
partnership firm. We also covered the formation process, the rights and liabilities of LLP partners,
the compliance requirements, and recent amendments to the LLP Act. We hope this presentation has
provided you with a comprehensive understanding of LLPs and their significance in the business
world. If you have any further questions, feel free to reach out to us. Thank you!