Limited liability partnership,2008

-by Sanjana sahu

PRESENTED TO- DR DEEPA SHRIVASTAVA

 Introduction

A Limited Liability Partnership (LLP) is a type of partnership in which some or all partners have
limited liabilities. LLPs are flexible legal and tax entities that allow partners to benefit from
economies of scale by working together while also reducing their liability for the actions of other
partners.
LLPs are common in professional businesses like law firms, accounting firms, medical practices, and
wealth managers.

Indian legislation that enables the formation of LLPs in India. An LLP is a hybrid business entity that
combines the features of a partnership firm and a company. . The LLP shall be a body corporate and a
legal entity separate from its partners.
The mutual rights and duties of the partners of the LLP inter se and those of the LLP and its partners s
hall be governed by an agreement done among the partners subject to the provisions of the Act
.
The LLP is a formal structure that requires a written partnership agreement and usually comes with an
nual reporting requirements depending on your legal jurisdiction
. The provisions of the Indian Partnership Act, 1932 shall not apply to a limited liability partnership .
Steps for Incorporation of LLP

 Reserving the name for the LLP: The applicant first files the e-Form 1 to check the availability of the name and then register the name
of the LLP. Once the name gets approved by the Ministry, it is reserved for the applicant for a duration of 90 days. If the LLP fails to be
incorporated within the given frame of time, they let go of the reservation and make it available for other applicants.

 Incorporating a new LLP: After the reservation of the name for the LLP, the applicant has to file e-Form 2 for the incorporation of the
LLP. It carries all the details of the LLP proposed, plus all the details of the partners and the designated partners.

 The partners and the designated partners have to give their consent to act in the respective decided roles.

 Filing of the LLP Agreement has to be done with the Registrar in e-Form 3 within 30 days from the incorporation of the LLP. Execution
of the LLP Agreement is mandatory as per Section 23 of the LLP Act, 2008.

 The LLP Incorporation process is complete after obtaining the approval of the LLP Agreement.
 Procedure for incorporating LLP act

Agreement Procedure
The LLP Act provides a framework for regulating the business affairs of limited
liability partnerships. It also defines what constitutes a partnership, how it can be In a Limited Liability Partnership Agreement, the agreement
has to be in writing and must have the following:
formed, dissolved, and other important terms related to this type of
entity. Incorporating a limited liability partnership is a procedure to create the
The parties’ names and addresses
legal entity known as a limited liability partnership. The articles of incorporation
The type of limited liability partnership and its state of
for a limited liability partnership must include the following:
formation
 The name, address, and registered agent of the LLP The date on which the limited liability partnership is formed
 The name, address, and registered agent of each general partner and its duration,

 The name and address of each member The name of the limited liability partnership’s official agent
for service of process (if applicable)
 The date when formed the LLP was formed.
A list of all general partner members of the limited liability
 . A brief statement about what type of business or profession is being
partnership of all general partner members of the limited
conducted by the LLP
liability partnership
Essentials of LLP

Common seal and limited

liability

Body corporate and Mutual agency and Perpetual succession and

artificial legal person separate legal entity LLP agreement

Minimum and maximum number of partners

Conclusion

The Limited Liability Partnership Act, 2008 was enacted to provide a legal framework for the
formation, operation, and management of limited liability partnerships in India. It allows the
creation of a partnership that provides limited liability to its partners, making it an attractive
business structure for entrepreneurs. The Act sets out the procedures for the incorporation of a
limited liability partnership, the rights and duties of partners, and the rules for the
management and winding up of the partnership. It also provides for the registration and
regulation of limited liability partnerships, and establishes the powers and functions of the
Registrar of LLPs.
Thankyou.
Thankyou.