TOPIC 16: QUICK REFERENCE TO “Basics about Limited Liability Partnership”

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Quick Reference to " Basics about Limited Liability Partnership " :-

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Points:-

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1. LLPs are governed by Limited Liability Partnership Act, 2008.

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2. It is Combination of Partnership Firm + Company.

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3. The LLP is regarded as Body Corporate and separate from its Partners.

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4. Minimum 2 Partners and there is no limit on Maximum number of Partners.

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5. Partners are jointly liable hoto their Contribution.

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6. Minimum 2 Designated Partners are required and out of them 1 should be resident of India.

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7. Filling of LLP agreement with ROC is mandatory.

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8. Statutory Audit is compulsory for LLPs if their Turnover is ₹40 lakhs or more OR if Contribution is ₹ 25 lakhs or more.

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9. An individual or Body Corporate can become a Partner in LLP.

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10. The rights and Duties of Partners are governed by "LLP Agreement ".

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11. The provisions of Secretarial Audit is not applicable for LLPs.

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12. An individual partner is Protected from joint liability created by another partner’s wrongful business decisions or any such misconduct.

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13. The Indian Partnership Act, 1932 is not be applicable to LLPs.

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14. Designated Partner is required to obtain/have a “Designated Partner’s Identification Number” (DPIN).

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15. There is no provision for regular meeting of members of LLPs.

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Regards
ACA SOURAV BAGARIA