LLP Act

Limited Liability Partnership Act, 2008

• The main focus of the Limited Liability Partnership Act, 2008 is to provide a new form of business entity that combines the benefits of a partnership with the advantages of limited liability.
• The Limited Liability Partnership Bill was passed by the Parliament in December 2006.
• A key advantage of a Limited Liability Partnership (LLP) is that it provides a shield of limited liability to its partners, while also allowing them to organize their internal structure as a partnership.
• The Ministry of Law and Justice notified the Limited Liability Partnership Rules, 2009 on 9th January 2007.
• The Limited Liability Partnership Act, 2008 differentiates between a "partner" and a "designated partner", with the latter having additional responsibilities and liabilities.

Test your knowledge of the Limited Liability Partnership Act, 2008 with this quiz. Assess your understanding of the meaning, incorporation, partners' relations, financial disclosures, conversions, winding up, and dissolution of LLPs. Differentiate between 'Limited Liability Partnership' and other business structures.