{"id":1315,"date":"2025-01-09T13:25:18","date_gmt":"2025-01-09T13:25:18","guid":{"rendered":"http:\/\/fastlegal.in\/blog\/?p=1315"},"modified":"2025-01-09T13:25:18","modified_gmt":"2025-01-09T13:25:18","slug":"everything-you-need-to-understand-about-limited-liability-partnership-llp","status":"publish","type":"post","link":"https:\/\/fastlegal.co.in\/blog\/llp\/everything-you-need-to-understand-about-limited-liability-partnership-llp\/","title":{"rendered":"Everything you need to understand about Limited Liability Partnership (LLP)"},"content":{"rendered":"<ul>\n<li><span style=\"font-family: Tahoma;\"><span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>\u00a0Act, 2008 and same is applicable to whole of\u00a0India.<\/span><\/li>\n<li><span style=\"font-family: Tahoma;\">Nature of\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>&#8211; Body Corporate, Legal\u00a0Entity,\u00a0separate\u00a0from its partners,\u00a0perpetual\u00a0\u00a0succession, change in partners does not affect existence, rights &amp;\u00a0liabilities.\u00a0<\/span><\/li>\n<li><span style=\"font-family: Tahoma;\">Partnership act will not apply to\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span><\/span><\/li>\n<li><span style=\"font-family: Tahoma;\">Address of Partner- Individual &#8211;\u00a0Residential\u00a0Address, Body Corporate &#8211;\u00a0Registered\u00a0Address<\/span><\/li>\n<li><span style=\"font-family: Tahoma;\">Body Corporate &#8211; Company,\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>\u00a0registered<span style=\"font-size: medium;\">\u00a0under this act,\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>\u00a0incorporated outside\u00a0<\/span>India<span style=\"font-size: medium;\">, Company incorporated\u00a0outside\u00a0<\/span>India<\/span><\/li>\n<li><span style=\"font-family: Tahoma;\">Business includes every trade, profession, service, occupation.<\/span><\/li>\n<li><span style=\"font-family: Tahoma; font-size: medium;\">Contribution &#8211;\u00a0Tangible,\u00a0Intangible,\u00a0Movable,\u00a0immovable, other\u00a0benefits, money,\u00a0promissory\u00a0<span class=\"markyb37zqt88\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">notes<\/span>, Agreement to contribute cash or property, contracts for services performed or to be performed. \u00a0obligation to perform (Form of contribution ) shall be according to\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>\u00a0Agreement.<\/span><\/li>\n<li><span style=\"font-family: Tahoma; font-size: medium;\">Creditors of\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>\u00a0&#8211; Acts in reliance of an obligation described in\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>\u00a0agreement, without notice of any compromise between partners may enforce\u00a0original\u00a0obligation against such partners.<\/span><\/li>\n<li><span style=\"font-family: Tahoma; font-size: medium;\">Monetary vale of contribution of each partner shall be account and disclosed in the accounts of the\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>\u00a0in prescribed manner<\/span><\/li>\n<li><span style=\"font-family: Tahoma;\">Entity<\/span><\/li>\n<li><span style=\"font-family: Tahoma;\">Financial Year 1 April to 31st March ( If incorporated after 30th\u00a0Sept\u00a0may end on 31st march of next year.)<\/span><\/li>\n<li><span style=\"font-family: Tahoma;\">Foreign\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>&#8211; Formed and incorporated outside\u00a0India which\u00a0establishes\u00a0place of business in\u00a0India.\u00a0<\/span><\/li>\n<li><span style=\"font-family: Tahoma;\"><span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>\u00a0Agreement &#8211; Written Agreement between &#8211; Partners of\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>,\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>\u00a0and Its Partners, which determines the mutual rights and duties of partners, rights and duties in relation to\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span><\/span><\/li>\n<li><span style=\"font-family: Tahoma;\">Name &#8211; Partner &#8211;\u00a0Individual- First, middle, last. Body Corporate-\u00a0Registered\u00a0name.\u00a0\u00a0<\/span><\/li>\n<li><span style=\"font-family: Tahoma;\">Partners- Minimum 2, Maximum &#8211; no limit prescribed in Act.<\/span><\/li>\n<li><span style=\"font-family: Tahoma;\">There is no disqualification that body corporate can not become partner but there is disqualification for individual.\u00a0<\/span><\/li>\n<li><span style=\"font-family: Tahoma;\">How can become a partner of\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>&#8211; Individual and Body Corporate in accordance with the\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>\u00a0agreement. They have to make Contribution.<\/span><\/li>\n<li><span style=\"font-family: Tahoma;\">Designated Partner- If incorporation document specifies who are designated\u00a0partners they shall be, \u00a0Each of partner than all.\u00a0\u00a0 Minimum 2 Partners required,\u00a0responsible for the compliance of all the acts applicable to\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>. LKiable for all the penalties imposed under this act. \u00a0Can become DP in accordance with the\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>\u00a0agreement, Prior approval to act as DP is must before, Should have DPIN (DIN), Conditions- Insolvent &#8211; 5 years,\u00a0Suspended\u00a0payment to creditors, done offence convicted by court, done offence of\u00a0fraud.\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>\u00a0shall file particulars of every individual who has given consent to act as DP in prescribed form to ROC.<\/span><\/li>\n<li><span style=\"font-family: Tahoma;\"><span style=\"font-size: medium;\">Change in designated partner- Designate new partner within 30 days of vacancy, if no partner is\u00a0<\/span>appointed all the partners will be designated partners ( this applicable if reduced below two)\u00a0<\/span><\/li>\n<li><span style=\"font-family: Tahoma; font-size: medium;\">Cessation from partnership by partner- 30 days notice to be given to other\u00a0partner\u00a0of his\u00a0intention\u00a0to resign. \u00a0 Notice of Resignation &#8211; to the person who is dealing with\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>\u00a0or ROC otherwise he will be liable.<\/span><\/li>\n<li><span style=\"font-family: Tahoma; font-size: medium;\">Partner of\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>\u00a0is a agent of\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>\u00a0but not of other partners<\/span><\/li>\n<li><span style=\"font-family: Tahoma; font-size: medium;\">If the partner do not have\u00a0authority\u00a0to do some act,\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>\u00a0is not bound for the act of partner.<\/span><\/li>\n<li><span style=\"font-family: Tahoma; font-size: medium;\"><span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>\u00a0liable- If the partner is liable to any person for wrong act or omission on his part in the course of business of\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>.<\/span><\/li>\n<li><span style=\"font-family: Tahoma; font-size: medium;\">Liabilities of\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>\u00a0shall be met out of\u00a0property\u00a0of\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>.<\/span><\/li>\n<li><span style=\"font-family: Tahoma; font-size: medium;\">Solely by reason of being partner, partner is not personally\u00a0liable.<\/span><\/li>\n<li><span style=\"font-family: Tahoma; font-size: medium;\">Partner is not liable for personal act,\u00a0omission of any other partner.<\/span><\/li>\n<li><span style=\"font-family: Tahoma; font-size: medium;\">Not Partner in real but holding out so- Liable to the extent of credit\u00a0received by him.<\/span><\/li>\n<li><span style=\"font-family: Tahoma; font-size: medium;\">Unlimited\u00a0liability\u00a0in case of fraud. \u00a0\u00a0<\/span><\/li>\n<li><span style=\"font-family: Tahoma; font-size: medium;\">Whistle Blowing- Court or tribunal can waive the penalty, if satisfied &#8211; partners provided useful information during investigation.<\/span><\/li>\n<li><span style=\"font-family: Tahoma; font-size: medium;\">Financial\u00a0Disclosures- Accounts to be kept as par double entry system, Prepare statement of Accounts and solvency for the financial year and shall be signed by the Designated\u00a0Partners\u00a0of the\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>\u00a0within 6 months form the end of the financial year and File with ROC,<\/span><\/li>\n<li><span style=\"font-family: Tahoma; font-size: medium;\">Audit<\/span><\/li>\n<li><span style=\"font-family: Tahoma; font-size: medium;\">Annual Return &#8211; To be filed to ROC within 60 days of\u00a0closure of Financial year.<\/span><\/li>\n<li><span style=\"font-family: Tahoma; font-size: medium;\">Compounding of offences- Only offences punishable with fine. By collecting a sum which may extent to the amount of maximum fine prescribed for the offence.<\/span><\/li>\n<li><span style=\"font-family: Tahoma; font-size: medium;\">Assignment and transfer of\u00a0Partnership\u00a0Right &#8211; Right of a partner to share of the profit or loss of the\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>, and to\u00a0receive distribution in accordance with\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>\u00a0agreement are\u00a0transferable\u00a0either wholly or partly.<\/span><\/li>\n<li><span style=\"font-family: Tahoma; font-size: medium;\">Transfer of right does not by itself cause disassociation of partner.<\/span><\/li>\n<li><span style=\"font-family: Tahoma; font-size: medium;\">Transfer of right pursuant to this section does not itself, entitle the transfer or\u00a0assign to participate\u00a0in the management. \u00a0<\/span><\/li>\n<li><span style=\"font-family: Tahoma; font-size: medium;\">Conversion of\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>\u00a0&#8211; Firm to\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>&#8211; IInd Sechedule, Pvt Company To\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>&#8211; IIIrd Sechedule , Unlisted Public Company to\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span>&#8211; IVth Sechedule.\u00a0<\/span><\/li>\n<li><span style=\"font-family: Tahoma; font-size: medium;\">Partner may land money to\u00a0<span class=\"markh1nkc5lla\" data-markjs=\"true\" data-ogac=\"\" data-ogab=\"\" data-ogsc=\"\" data-ogsb=\"\">LLP<\/span><\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>LLP\u00a0Act, 2008 and same is applicable to whole of\u00a0India. Nature of\u00a0LLP&#8211; Body Corporate, Legal\u00a0Entity,\u00a0separate\u00a0from its partners,\u00a0perpetual\u00a0\u00a0succession, change in partners does not affect existence, rights &amp;\u00a0liabilities.\u00a0 Partnership act will not apply to\u00a0LLP Address of Partner- Individual &#8211;\u00a0Residential\u00a0Address, Body Corporate &#8211;\u00a0Registered\u00a0Address Body&hellip; <a href=\"https:\/\/fastlegal.co.in\/blog\/llp\/everything-you-need-to-understand-about-limited-liability-partnership-llp\/\" class=\"more-link\">Continue Reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[176],"tags":[4045,4047,4046,4044],"class_list":["post-1315","post","type-post","status-publish","format-standard","hentry","category-llp","tag-important-concepts-about-llp","tag-indian-llp-main-requirements","tag-what-are-the-main-features-of-llp-in-india","tag-what-is-limited-liability-partnership-llp"],"_links":{"self":[{"href":"https:\/\/fastlegal.co.in\/blog\/wp-json\/wp\/v2\/posts\/1315","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fastlegal.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fastlegal.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fastlegal.co.in\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/fastlegal.co.in\/blog\/wp-json\/wp\/v2\/comments?post=1315"}],"version-history":[{"count":1,"href":"https:\/\/fastlegal.co.in\/blog\/wp-json\/wp\/v2\/posts\/1315\/revisions"}],"predecessor-version":[{"id":1316,"href":"https:\/\/fastlegal.co.in\/blog\/wp-json\/wp\/v2\/posts\/1315\/revisions\/1316"}],"wp:attachment":[{"href":"https:\/\/fastlegal.co.in\/blog\/wp-json\/wp\/v2\/media?parent=1315"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fastlegal.co.in\/blog\/wp-json\/wp\/v2\/categories?post=1315"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fastlegal.co.in\/blog\/wp-json\/wp\/v2\/tags?post=1315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}