| Limited Liability Partnership |
In India, Limited Liability Partnership (LLP) is defined as an entity formed and registered under the Limited Liability Partnership Act, 2008. In short, it means a partnership firm that is incorporated under the LLP Act. Apart from this, it takes the form of a separate legal entity having a continuous succession, similar to companies.
The features of LLP can be listed down as follows:
LLP has a separate legal entity similar to companies.
The partners constituting the LLP have limited liability to the extent of the contribution made by them.
LLP can be formed at a comparatively lower cost as against a company.
In comparison to companies, there is lower compliance and fewer regulations.
There is no need to meet the minimum capital contribution.
Minimum of two partners are needed to constitute an LLP, without an upper limit set.
An LLP agreement must be entered into by the partners to govern their rights and duties.
LLP (Sample)
