PPT: The Limited Liability Partnership, 2008 | Business Laws for CA Foundation PDF Download

 Page 1


LIMITED LIABILITY PARTNERSHIP (LLP)ACT, 2008
• The act came into Existence in 7
th
January, 2009.
• The Act contains 81 Sections, 14 chapters and 4 Schedules.
• The extends to whole of India.
Page 2


LIMITED LIABILITY PARTNERSHIP (LLP)ACT, 2008
• The act came into Existence in 7
th
January, 2009.
• The Act contains 81 Sections, 14 chapters and 4 Schedules.
• The extends to whole of India.
WHAT IS LIMITED LIABILITY PARTNERSHIP (LLP)
The LLP act states, “LLP means a partnership formed and registered 
under the act”. [Sec. 2(n)]
Thus, an LLP comes into existence after its registration/corporation 
under LLP Act, 2008.
Page 3


LIMITED LIABILITY PARTNERSHIP (LLP)ACT, 2008
• The act came into Existence in 7
th
January, 2009.
• The Act contains 81 Sections, 14 chapters and 4 Schedules.
• The extends to whole of India.
WHAT IS LIMITED LIABILITY PARTNERSHIP (LLP)
The LLP act states, “LLP means a partnership formed and registered 
under the act”. [Sec. 2(n)]
Thus, an LLP comes into existence after its registration/corporation 
under LLP Act, 2008.
FEATURES OF A LIMITED LIABILITY PARTNERSHIP FIRM
1. Incorporated body – every LLP is an incorporated entity which is 
formed and incorporated under the provisions of the LLP Act, 2008.
2. Body Corporate – A LLP is a body Corporate registered under LLP 
Act, 2008.
3. Minimum and Maximum partners – An LLP shall have  atleast
two partners. There is no limit on maximum number of partners.
4. Separate Legal Existence – An LLP has a separate legal existence 
from its partners. It can enter into contract with its partners and sue 
on partners and can be sued by partners.
5. Perpetual succession – A LLP is a legal entity with perpetual 
succession. it can be wound up in accordance with the provisions of 
the act.
Page 4


LIMITED LIABILITY PARTNERSHIP (LLP)ACT, 2008
• The act came into Existence in 7
th
January, 2009.
• The Act contains 81 Sections, 14 chapters and 4 Schedules.
• The extends to whole of India.
WHAT IS LIMITED LIABILITY PARTNERSHIP (LLP)
The LLP act states, “LLP means a partnership formed and registered 
under the act”. [Sec. 2(n)]
Thus, an LLP comes into existence after its registration/corporation 
under LLP Act, 2008.
FEATURES OF A LIMITED LIABILITY PARTNERSHIP FIRM
1. Incorporated body – every LLP is an incorporated entity which is 
formed and incorporated under the provisions of the LLP Act, 2008.
2. Body Corporate – A LLP is a body Corporate registered under LLP 
Act, 2008.
3. Minimum and Maximum partners – An LLP shall have  atleast
two partners. There is no limit on maximum number of partners.
4. Separate Legal Existence – An LLP has a separate legal existence 
from its partners. It can enter into contract with its partners and sue 
on partners and can be sued by partners.
5. Perpetual succession – A LLP is a legal entity with perpetual 
succession. it can be wound up in accordance with the provisions of 
the act.
7. Partners by Agreement – The partners of a LLP are those who 
become partners of the LLP in accordance with the LLP agreement. 
However, the persons named in the incorporation document and who 
subscribe to the incorporation document shall become partners of it.
8. Designated Partner – Every LLP shall have at least 2 designated 
partners. This must be individual persons and at least one of them 
shall be resident of India.
9. Limited Liability – The liability of a partner in LLP is limited to his 
contribution to the LLP. A partner of  LLP is not personally liable for 
any obligation or liability of LLP.
10. Common seal – An LLP can have a common seal, if it decides to 
have it.
11. Mutual Rights and duties of partners and LLP – the mutual 
rights and duties of partners are governed by LLP agreement.
Page 5


LIMITED LIABILITY PARTNERSHIP (LLP)ACT, 2008
• The act came into Existence in 7
th
January, 2009.
• The Act contains 81 Sections, 14 chapters and 4 Schedules.
• The extends to whole of India.
WHAT IS LIMITED LIABILITY PARTNERSHIP (LLP)
The LLP act states, “LLP means a partnership formed and registered 
under the act”. [Sec. 2(n)]
Thus, an LLP comes into existence after its registration/corporation 
under LLP Act, 2008.
FEATURES OF A LIMITED LIABILITY PARTNERSHIP FIRM
1. Incorporated body – every LLP is an incorporated entity which is 
formed and incorporated under the provisions of the LLP Act, 2008.
2. Body Corporate – A LLP is a body Corporate registered under LLP 
Act, 2008.
3. Minimum and Maximum partners – An LLP shall have  atleast
two partners. There is no limit on maximum number of partners.
4. Separate Legal Existence – An LLP has a separate legal existence 
from its partners. It can enter into contract with its partners and sue 
on partners and can be sued by partners.
5. Perpetual succession – A LLP is a legal entity with perpetual 
succession. it can be wound up in accordance with the provisions of 
the act.
7. Partners by Agreement – The partners of a LLP are those who 
become partners of the LLP in accordance with the LLP agreement. 
However, the persons named in the incorporation document and who 
subscribe to the incorporation document shall become partners of it.
8. Designated Partner – Every LLP shall have at least 2 designated 
partners. This must be individual persons and at least one of them 
shall be resident of India.
9. Limited Liability – The liability of a partner in LLP is limited to his 
contribution to the LLP. A partner of  LLP is not personally liable for 
any obligation or liability of LLP.
10. Common seal – An LLP can have a common seal, if it decides to 
have it.
11. Mutual Rights and duties of partners and LLP – the mutual 
rights and duties of partners are governed by LLP agreement.