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Limited Liability Partnership in India

 Limited Liability Partnership in India


Law

Limited Liability Partnership is prevailed by ‘The Limited Liability Partnership Act, 2008’ and various Rules made thereunder

 Registered under the LLP Act, 2008. The registration is done under the Ministry of Corporate Affairs.

Liability

The liability of partners is limited in an LLP mainly because it’s a separate legal entity. The liability of the partners is limited to the amount invested by them in the company.

Number of partners

A minimum of two partners is required. However, a minor cannot be a partner in an LLP

DPIN

Each partner is required to obtain a DPIN (Designated Partner Identification Number) before being assigned as a designated partner in an LLP

Transferability

Shares can be easily transferred to another person after obtaining the consent of all the partners. However, a transferee cannot become a member automatically.

Conversion

An LLP can be converted to a Private Limited Company. But, it cannot be converted back into a partnership firm.

Compliance

Filing of annual returns to the Ministry of Corporate Affairs is mandatory.

Dissolution

Voluntary or by order of National Company Law Tribunal.

Conclusion

Under the partnership firm, every partner owns a share of the business. This type of structure is less expensive and customizable too. On the other hand, an LLP has the advantages of an LLP and a partnership. The partners in an LLP enjoy limited liability.

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