LIMITED LIABILITY PARTNERSHIP

GROUP MEMBERS :
VISHALLINY CHANDRA

GM05040

ABOUT LIMITED LIABILITY PARTNERSHIP

What is Limited Liability Partnership? New form of business vehicle that would complement the traditional options of carrying on a business either by way of sole proprietorships, partnerships or companies. The LLP is governed by the Limited Liability Partnership Act 2012 (Act 743) (LLP Act 2012). Combines the characteristics of a company and a partnership firm that provides the protection of limited liability for its partners and flexibility of the partnership arrangement for the internal management of its business. The LLP will provide businessmen and investors the flexibility and freedom to select the best business model that suits their needs and the requirements of their respective business structure.

Who is it for? The LLP business structure is designed for all lawful business purposes with a view to make profit. LLP may also be formed by professionals such as Lawyers, Chartered Accountants and Company Secretaries for the purpose of carrying on their professional practice. The LLP concept will also support start ups, small and medium enterprises (SMEs) to grow their businesses without having to worry too much on their personal liabilities, personal assets and strict compliance requirements.

FUNDAMENTALS OF A LIMITED LIABILITY PARTNERSHIP

1) 2) 3) 4)

A limited liability partnership is a body corporate and shall have legal

personality separate from that of its partners.

A limited liability partnership shall have perpetual succession. Any change in the partners of a limited liability partnership shall not affect the existence, rights or liabilities of the limited liability partnership. A limited liability partnership shall have unlimited capacity and shall be capable of :suing and being sued; acquiring, owning, holding and developing or disposing of property; and doing and suffering such other acts and things as bodies corporate may lawfully do and suffer.

ISSUES AND CHALLENGES

A. Limited liability and Negligence members B. Internal Governance and Default Provisions C. Disclosure and Accounting