Fill in the blanks: An LLP is formed under the Limited Liability Partnership Act ___ and offers ___ succession.

2008; perpetual

Describe the significance of the LLP agreement in the management of a Limited Liability Partnership.

LLP agreement is crucial for management.

• Defines partner rights and duties.

• Governs partner relationships clearly.

• Provides operational management flexibility.

What are the minimum requirements for forming a Limited Liability Partnership in India?

Minimum requirements for LLP in India.

• Two partners are needed.

• At least one resident partner.

• Partners can be individuals or entities.

Fill in the blanks: The LLP Act allows a partnership firm to convert into an LLP as per the provisions of the ___ legislation.

Proposed

What role does the Central Government play in the oversight of Limited Liability Partnerships?

Central Government oversees LLPs effectively.

• Ensures compliance with regulations.

• Investigates LLP affairs thoroughly.

• Appoints inspectors for oversight.

True or False: The incorporation of an LLP requires a detailed memorandum specifying its object clauses similar to a private limited company.

False. An LLP requires a simpler incorporation document without the need for detailed object clauses.

What happens to the LLP in the event of a partner's death or retirement?

The death or retirement of a partner does not dissolve the LLP, allowing it to continue its operations indefinitely.

How does the liability of partners in an LLP compare to that of partners in a traditional partnership?

LLP partners have limited liability.

• Protection from personal assets.

• Liability up to contributions only.

• Safer for business investments.

What is the consequence for a person who makes a false statement in the incorporation documents of an LLP?

The person can face imprisonment for up to two years and a fine ranging from ten thousand to five lakh rupees.

What are the primary differences between a Limited Liability Partnership (LLP) and a traditional partnership?

False

LLP offers limited liability protection.

• Separate legal entity status.

• Not dissolved by partner changes.

• Requires formal incorporation process.