{"id":337,"date":"2018-06-28T05:58:38","date_gmt":"2018-06-28T05:58:38","guid":{"rendered":"https:\/\/companyregistrationonline.in\/?p=337"},"modified":"2020-10-07T07:45:13","modified_gmt":"2020-10-07T07:45:13","slug":"llp-meaning-llp-act-llp-india","status":"publish","type":"post","link":"https:\/\/companyregistrationonline.in\/blog\/llp-meaning-llp-act-llp-india\/","title":{"rendered":"All About Limited Liability Partnership (LLP)"},"content":{"rendered":"

Introduction<\/strong><\/h2>\n

By way of the Limited Liability Partnership<\/strong> Act, 2008 the worldwide recognized form of a business organization named Limited Liability Partnership entities was introduced in India. A Limited Liability Partnership combines the advantages of both the Company and Partnership in a single form of organization. The important difference from that of traditional partnership is that a partner in LLP<\/a><\/strong> is not responsible for the misconduct or negligence of another partner. All partners will have limited liability for the protection of each individual within the partnership which is similar to that of the shareholders of a corporation. In LLP the partners have the right to manage the business directly, unlike corporate shareholders. The personal liability of the partners for any errors, incompetence, negligence, or omissions of the employees in LLP or other agents is also limited.<\/p>\n

An attempt has been made in this article to give an overview of the LLP<\/strong><\/a> legislation in India, covering LLP incorporation<\/a>, the role of partners, and other issues connected to LLP.<\/p>\n

Earlier there were only two forms of entities in India:<\/p>\n

    \n
  1. Limited Liability Entities (Partnership\/Proprietorship)<\/li>\n
  2. Unlimited Liability Entities(Company)<\/li>\n<\/ol>\n

    In About Limited Liability Partnership<\/a><\/strong>, While Unlimited Liability Entities such as partnerships were easy to register but they suffered the disadvantage of unlimited liability. Therefore, there was a need for a single entity that could combine the advantages offered by both these forms of organizations. LLP in India came into existence in the year 2008 with the LLP Act. Since then it has become a preferred form of business.<\/p>\n

    LLP registration<\/a><\/strong> is easier with post-registration compliance less in comparison to a body corporate and unlike partnership where liability is unlimited LLPs limit the liability of partners to the extent of their capital contribution.<\/p>\n

    Advantages of LLP<\/h2>\n