Limited Liability

Partnership Act 2008

Limited Liability Partnership (LLP) Act 2008
• Passed in 12th Dec’08 and became effective from 01 st Apr’09
Salient features
• The LLP has an alternative corporate business vehicle that would give
the benefits of limited liability but allows its members the flexibility of
organizing their internal structure as a partnership based on an
agreement
• The LLP Act does not restrict the benefit of LLP structure to certain
classes of professionals only and would be available for use by any
enterprise which fulfills the requirements of the Act
•  While the LLP has a separate legal entity, liable to the full extent of its
assets, the liability of the partners would be limited to their agreed
contribution in the LLP
• Minimum no. of partners is 2 but No upper limits to number of partners
• LLP Act makes a mandatory statement where one of the partner to the
LLP should be an Indian
Limited Liability Partnership (LLP) Act 2008
• An LLP will be under obligation to maintain annual accounts reflecting
true and fair view of its state of affairs
• LLP can also take actions like mergers amalgamations. Similarly there are
provisions for winding up and dissolution
• Every LLP should have two "Designated partners" at least one of whom
should be a resident Indian satisfying the conditions stipulated by the
Central Government. They should apply and obtain designated partner
identification number (DPIN) and digital signature certificate from the
designated authority.
• The Act also provides for conversion of existing partnership firm, private
limited company and unlisted public company into a LLP by registering
the same with the Registrar of Companies (ROC)
• An intending unlimited liability partnership firm seeking to convert itself
into a LLP is required to apply to the Registrar as per form 17 which
should be accompanied by written consent from all creditors.
• The Registrar of Companies (Roc) shall register and control LLPs also