Limited Liability Partnerships (LLP) is a type of legal business entity separate from its partners. It is often termed as a hybrid of a company and a partnership firm as it contains characteristic of both ‘a corporate structure’ as well as ‘a partnership firm structure. By Incorporating an LLP one gets the benefits of both Limited Liability Company as well as the flexibility of a partnership firm. Since it is a separate legal entity, retirement or death of a partner would not dissolve the LLP.
LLP shall have at least two Designated Partners, and at least one shall be resident in India. A body corporate can also act as designated partner through its nominee. An Individual can hold position of both partner and Designated Partners. There is no limit for maximum number of partners in LLP.
The partners of a LLP have limited liability i.e. they are not liable beyond the money contributed by them, In case of Insolvency, personal properties of the partners cannot be sold by the court to repay the liabilities of the LLP. It is suitable for small and medium enterprises due to flexibility in its structure and operation.
The name of the Limited Liability Partnerships is also protected by registration i.e, The Registrar never allow name to be registered, which are identical, similar or resembling with the existing name of an LLP. Once your LLP is registered and certificate, no other person can register another LLP with the same name.
Our team of highly qualified professionals at Ask4compliance.com can help you to establish a more organized Limited Liability Partnership (LLP) Firm to start your business in association with other partners.