Limited Liability Partnerships in India

A legal entity separate from its owners, with perpetual existence, a common seal, and the ability to own property, sue, and be sued.

A legal person created through registration, not by birth, with rights similar to a natural person but lacking physical attributes.

A limited liability partnership is an artificial legal person created by registering an incorporation document with the LLP Act.

The owners of an LLP are not personally liable for the partnership's debts and obligations; their liability is limited to their investment.

An LLP can enter into contracts and acquire and dispose of property, like a natural person, but it can't perform actions that require a physical body, like appearing in court.

LLPs can't take oaths, appear in court personally, be imprisoned, or practice certain professions like law or medicine.

A legal entity that combines the features of a partnership and a corporation, offering the benefits of limited liability while retaining the flexibility of a partnership.

A business structure where partners have limited personal liability for business debts and obligations.

An Act that regulates the formation, operation, and dissolution of Limited Liability Partnerships (LLPs) in India.

A set of rules that regulate the registration, administration, and operation of LLPs in India.

The key advantage of an LLP is that the partners' liability is limited to their agreed contribution in the LLP. This means that their personal assets are protected from business debts.

LLPs offer flexibility in organizing internal management through mutually agreed agreements among partners, similar to a partnership firm.

LLPs provide relatively low compliance costs compared to incorporated companies, making them attractive for smaller businesses.

LLPs are a suitable business structure for small and medium enterprises (SMEs) and professional service providers.

The term 'business' in the LLP Act includes a wide range of activities such as trade, profession, services, and occupations.

A limited liability partnership is recognized as a separate legal entity, distinct from its individual partners.

An LLP can own and transfer property in its own name, independent of its partners.

Partners cannot claim ownership of LLP assets, even during dissolution.

An LLP can sue or be sued in its own name, separate from its partners.

Creditors of an LLP can only seek repayment from the LLP, not personally from the partners.

The principle of separate legal entity allows a company to exist independently from its owners, ensuring limited liability.

The case demonstrated that a company, even if controlled by a single person, is a distinct legal entity with separate liability.

This landmark case confirmed the concept of separate legal entity and its implications for limited liability.

A legal entity governed by the Companies Act, 2013, with separate legal personality and limited liability for shareholders.

A legal document outlining the rights, responsibilities, and internal governance structure of a Limited Liability Partnership.

A legal structure with unlimited liability for partners, meaning they are personally responsible for business debts.

Partners in an LLP who are responsible for legal compliance and adherence to statutory regulations.

An LLP's annual financial report, including details on solvency and financial position.

A legal requirement for companies to file their annual details, including shareholders and company structure.

A legal structure with a minimum of two partners and no maximum limit, offering flexibility in governance.

A Limited Liability Partnership (LLP) is a separate legal entity from its partners, meaning it has its own rights and liabilities.

An LLP can continue to exist even if its partners change, unlike a regular partnership that dissolves when a partner leaves.

LLPs have perpetual succession, meaning they can exist indefinitely, unlike partnerships that have a limited lifespan.

An LLP's partners can agree to change the business's operations or structure, as long as they document it and inform the Registrar of Companies.

A partner's financial rights in an LLP can be transferred without causing the partnership to dissolve.

In an LLP, the transfer of a partner's rights does not automatically make the transferee a partner. They need the consent of all existing partners to become one.

The Indian Partnership Act doesn't apply to LLPs unless specifically stated in their agreement.

LLPs are not legally required to have their accounts audited if their capital contribution is under ₹25 lakhs and their annual turnover is less than ₹40 lakhs.

The liability of each partner in a Limited Liability Partnership (LLP) is limited to the extent of their investment in the LLP. This means their personal assets are not at risk if the LLP incurs debts.

An LLP is not required to get its accounts audited by an independent auditor if their annual turnover is less than 40 lakhs. However, if their turnover exceeds 40 lakhs, an audit is mandatory.

The official name of a Limited Liability Partnership (LLP) must end with the letters 'LLP'. This distinguishes LLPs from other business structures like private limited companies.

The responsibility of fulfilling the legal obligations set by the LLP Act lies with the Designated Partners of the LLP. They are specifically appointed to handle compliance with the LLP rules.

A Limited Liability Partnership (LLP) cannot be set up for purely charitable purposes. It's a legal structure for business activities, not for solely charitable work.