Home / Helpservices / What is Limited Liability Partnership or LLP ?

What is Limited Liability Partnership or LLP ?

What is LLP?

The LLP is a body corporate and a legal entity separate from its partners. Any two or more persons, associated for carrying on a lawful business with the aim to profit, may by subscribing their names to an incorporation document and filing the same with the Registrar, form a Limited Liability Partnership.

LLP combines the advantages of both the Company and Partnership into a single form of organisation. In an LLP, one partner is not responsible or liable for another partner’s misconduct or negligence; this is an important difference from that of an unlimited partnership.

Advantages of LLP

  • LLP is cost effective. If a partnership model of Rs 1 lakh will incur a cost of Rs 7 lakh to execute it, a LLP model will incur only Rs 2 lakh.
  • LLP is a separate legal entity, separate from its partners, can own assets in its name, sue and be sued. This limits the liability of partners as individuals.  
  • One partner is not liable for another partner’s misconduct or negligence. Say in case of a fraud by one partner the other partner will be liable only for what they committed in the agreement and not for the one who did fraud.
  • The duties, liabilities and rights of the partners are governed by the LLP agreement. Hence, there is the freedom to define your share of all the above.
  • Liability of the partners is limited to the extent of their contribution in the LLP. No exposure of personal assets of the partner, except in cases of fraud.
  • In an LLP the maximum number of partners is not fixed. The minimum of course is two.
  • Easy to dissolve and wind up

About Ashish Dahekar

In introducing a BlackT Electrotech which is based on planning and dedication of skilled persons as concern with applications of Electronic and Telecommunication through modern conceptual products like Remote Switching System, Automatic Water Level Controller, etc products. Our mission is to reach BlackT ElecgtroTech’s product to wide range of customers with priority of highly customer’s satisfaction. We work for you and you’re our boss. And Technology is a Features we will show you the Benefits. We have been working with a great customer’s valuable feedback and we shall continue it for many blessing up coming years. Company has started on small capital with a moto at customer satisfaction prior and then profit. We are provide best techincal service after selling product/service.

Check Also

Extensible Markup Language

Introduction to XML ( Extensible Markup Language )

In computing, Extensible Markup Language (XML) is a markup language that defines a set of ...

One comment

  1. This is very attention-grabbing, You’re an excessively professional blogger.
    I have joined your rss feed and look forward to in the hunt for more of your great
    post. Also, I’ve shared your website in my social networks

Leave a Reply