Law defines LLP as “A corporate business vehicle that enables professional expertise and entrepreneurial initiative to combine and operate in flexible, innovative and efficient manner, providing benefits of limited liability while allowing its members the flexibility for organizing their internal structure as a partnership”
Features of LLP :-
- It is a body corporate with separate legal entity from its partners. The mutual rights and duties of the partners of an LLP are governed by LLP Agreement.
2.Every LLP should have at least two partners with at least two individuals as “designated partners”, of whom at least one must be resident in India. Only designated partners are responsible for compliance with the Act. However, there is no limit on the maximum number of partners.
- No requirement of Minimum Capital Contribution.
- The LLP Act does not restrict the benefit of LLP structure to certain classes of rofessionals only and would be available for use by any enterprise.
- No partner is liable on account of the independent or unauthorized action of other partners or for their misconduct.
- A firm, private company or an unlisted public company can be converted into LLP.
- The Act empowers Central Government to apply provisions of the Companies Act, 2013 as appropriate, by notification with such changes as deemed necessary, in the LLP Act, 2008.
- The winding up of LLP is either voluntary or by the High Court.