Fill in the blank: An LLP is governed by the ___, which allows it to have a distinct legal identity separate from its partners.

Limited Liability Partnership Act, 2008

Explain the significance of perpetual succession in a Limited Liability Partnership.

Perpetual succession ensures business continuity.

• LLP survives partner changes.

• Provides stability in operations.

• Enhances investor confidence.

What are the implications of the term 'designated partner' in the context of an LLP?

Designated partners are responsible for ensuring compliance with the LLP Act and must be individuals, with at least one being a resident of India.

Fill in the blank: The Limited Liability Partnership Act, 2008 exempts LLPs from the provisions of the ___ Act, 1932.

Partnership

What is one major disadvantage of forming an LLP compared to a traditional partnership?

One major disadvantage is that LLPs face more stringent statutory compliance and their documents are public records, unlike traditional partnerships.

How does the Limited Liability Partnership (Amendment) Act, 2021 benefit small LLPs?

It introduces reduced penalties for non-compliance and defines criteria that allow small LLPs to operate with lower regulatory burdens.

Fill in the blank: The LLP Act specifies that a partner must notify the LLP of any changes to their ___ or ___ within 15 days.

Name; address

What is the role of the Central Government concerning foreign limited liability companies under the LLP Act?

The Central Government is authorized to establish rules governing the conduct of business by foreign limited liability companies operating in India.

True or False: Partners in an LLP are liable for the wrongful acts of their fellow partners.

False. Partners are only liable for their own actions, not for the wrongful acts of other partners.

What are the consequences of failing to file the annual return within the stipulated time for designated partners?

Designated partners may face fines of up to 1 lakh rupees for failure to ensure the LLP files its annual return on time.

Fill in the blank: The conversion of a private company to an LLP requires that there is no ___ interest in its assets.

Security