Limited Liability Partnership (LLP) is an alternative type of business association. It gives the advantages of limited liability as well as permits its individuals the adaptability of sorting out their inside undertakings as an association in view of a commonly arrived assention. Liability of the accomplices isn’t as restricted as that of investor in an organization. Facilitate there could be boundless obligation on accomplices, on the off chance that that of certain different laws. In an undeniably hostile market condition, a requirement for another corporate shape giving a contrasting option to the conventional association, with boundless individual risk from one viewpoint, and, the statute-based administration structure of the limited liability company on the other, was felt, keeping in mind the end goal to empower proficient skill and entrepreneurial activity to consolidate, arrange and work in adaptable, creative and productive way.
- An LLP is a hybrid form of organisation having features of a partnership firm under the Partnership Act, 1932 and a company under the Companies Act, 1956/2013.
- The LLP’s are administered by the Registrar of Companies.
- Liability of partners is limited except where an Act is carried out by the LLP with intent to defraud creditors or any other person or for any fraudulent purpose.
- There is no limit on maximum number of partners.
- Rights and duties of partners of an LLP and mutual rights and duties between an LLP and its partners are governed by the LLP Agreement between the partners or between the LLP and its partners.
- Partners are agents of LLP but not the agents of other partners.
- An individual or body corporate may become a partner in LLP.