It is a new phenomenon in Indian context. The Parliament of India has enacted (Limited Liability Partnership Act, 2008) with effect from April 1, 2009. Therefore, now the Indian laws permits to incorporate LLP.
Following are silent features of LLP:
– It shall be a body corporate and a legal entity separate from its partners.
– Perpetual succession
– The liability of the partners would be limited to their agreed contribution in the LLP. Further, no partner would be liable on account of the independent or unauthorized actions of other partners
The partners have the right to manage the business directly
– Minimum of 2 partners and no maximum number.
– The rights and duties of partners in LLP, will be governed by the agreement between partners.
– Liability of the partners is limited to the extent of his contribution in the LLP.
– Audit of the accounts is required only if the contribution exceeds Rs. 25 lakhs by the partners or annual turnover exceeds Rs.40 lakhs.
– It is mandatory for the partners to have DPIN