LIMITED LIABILITY

PARTNERSHIP
THE BASIC INTRODUCTION
Basic information:-
‘An LLP is an incorporated partnership formed and registered
under LLP Act,2008 with limited liability and perpetual
succession.’

ENFORCEMENT OF ACT (by its rules): 1st April,2009.

REGISTRATION OF 1st LLP :2nd April,2009.

PARTNERSHIP + COMPANIES = LLP*

*IT’S A HYBRID VERSION OF BOTH OF THESE FORM OF ORGANISATION

Created in July,2016
FEATURES- at a glance
1.LEGAL BIRTH AND LEGAL DEATH.

2.SEPARATE LEGAL ENTITY.

3.EXISTENCE OF AN AGREEMENT.

4.LIMITED LIABILITY.

5.MAINTENANCE OF ANNUAL ACCOUNTS.

6.LLP ACT, 2008 IS APPLICABLE.

GOVERNANCE BY:-

● LIMITED LIABILITY PARTNERSHIP ACT,2008

● REGISTRAR OF COMPANIES/LLP-MCA.
● LLP AGREEMENT BETWEEN THE PARTNERS.
WHAT IS THE DIFFERENCE BETWEEN A LLP AND A PARTNERSHIP?

BASIS LLP PARTNERSHIP

1.SEPARATE LEGAL ENTITY YES NO

2.UNLIMITED LIABILITY NO YES

3.EFFECT OF RETIREMENT NOT AT ALL YES. ITS EXISTENCE ENDS.

OR DEATH OF
THE PARTNERS ON THE
FIRM

4.IS LEGAL BIRTH YES NO

MANDATORY?
BASIS LLP PARTNERSHIP

5.LIMIT ON MAX. NO. OF NO 20

PARTNERS

6.PERPETUAL SUCCESSION YES. SO IT ALSO HAS ITS NO.

OWN COMMON SEAL.

7. IMPORTANT DOCUMENTS LLP AGREEMENT PARTNERSHIP DEED.

8. ARE BUSINESS YES NO

TRANSACTIONS BE POSSIBLE
BETWEEN THE FIRM AND ITS
MEMBERS?
 ADVANTAGES DISADVANTAGES

-SEPARATE LEGAL ENTITY -LACK OF PRIVACY

-PERPETUAL SUCCESSION -REQUIREMENT OF LLP AGREEMENT

-LIMITED LIABILITY

-INTERNAL FLEXIBILITY

Info. compiled and ppt made by-

Muskan Mehta,S.Y.
Roll No.-5607
SO, WHICH IS BETTER? (especially for the professionals and small enterprises)

Compliances are almost similar in the LLP Act as compared

to the companies act. However, if we look at the various
advantages of an LLP as compared to a company, we can
opt for LLP instead of a company and a partnership firm
despite all the paper formalities and procedure.
THANK YOU.