Limited Liability Partnership (LLP) Learning Outcomes

A Limited Liability Partnership (LLP) is a type of partnership in which each partner's liability is limited to the amount they have invested in the business. The need for LLP arises from the desire to combine the advantages of both the company and partnership forms of business. Some of its features include separate legal entity, perpetual succession, and limited liability of partners. The advantages of LLP include flexibility, limited liability, and tax benefits.

The main differences between a Limited Liability Partnership (LLP) and other forms of organization lie in the limited liability aspect, management structure, and regulatory requirements. In an LLP, the partners have limited liability, whereas in other forms of organization such as sole proprietorship and general partnership, the liability of the owners is unlimited. Additionally, the management structure and regulatory requirements differ among these forms of organization.

The characteristics of Limited Liability Partnership (LLP) include separate legal entity, limited liability of partners, perpetual succession, flexibility in management, and less regulatory compliance. LLP provides a hybrid structure combining features of both partnerships and companies, making it an attractive option for small and medium-sized businesses.

The Limited Liability Partnership Act, 2008 was passed by the Parliament on 12th December 2008, and many of its sections were enforced from 31st March 2009. The President of India assented to the Bill on 7th January 2009, leading to its enactment.

The LLP Act, 2008 consists of 81 sections and 4 schedules, providing comprehensive provisions for the formation and regulation of Limited Liability Partnerships in India.