Limited Liability Partnership (LLP)
Now India has also joined the league of countries who allows creation of "Limited Liability Partnership" (LLP), which requires least
compliances with the benefit of limited liability. This format is quite useful for small and medium enterprises in general and for the
enterprises in services sector in particular, including professionals and knowledge based enterprises. To facilitate this Parliament of
India have enacted Limited Liability Partnership (LLP) Act, 2008.
I. The LLP is an alternative corporate business vehicle that would give the benefits of limited liability but would allow its members
the flexibility of organizing their internal structure as a partnership based on an agreement.
II. The Act does not restrict the benefit of LLP structure to certain classes of professionals only and would be available for use by
any enterprise which fulfills the requirements of the Act.
III. As the LLP is a separate legal entity, liable to the full extent of its assets, the liability of the partners is limited to their
agreed contribution in the LLP. Further, no partner is liable on account of the independent or un-authorized actions of other partners,
thus allowing individual partners to be shielded from joint liability created by another partner’s wrongful business decisions or
IV. LLP shall is a body corporate and a legal entity separate from its partners. It will have perpetual succession. Indian Partnership
Act, 1932 shall not be applicable to LLPs and there is not any upper limit on number of partners in an LLP unlike a ordinary
partnership firm where the maximum number of partners cannot exceed 20.
V. An LLP is under obligation to maintain annual accounts reflecting true and fair view of its state of affairs. Since tax matters of
all entities in India are addressed in the Income Tax Act, 1961, the taxation of LLPs is also addressed in that Act.
What Iqbal Kaur & Associates Offers
Iqbal kaur & Associates offers services from Reservation of name to collection of Certificate of Incorporation which inter alia includes,