Limited Liability Partnership Incorporation
Limited Liability Partnership (LLP) is a relatively new corporate form to provide an alternative to the traditional partnership which has unlimited liability on Individual Partners, LLP is a hybrid form of partnership, The LLP is a body corporate and a legal entity separate from its partners with the liability of the partners being limited to their agreed contribution which may be of tangible or intangible in nature, Any two or more persons (must have at least one person should be resident in India) associated for carrying on a lawful business with a view to profit, may form a Limited Liability Partnership, The LLP is a suitable vehicle for small enterprises.
No partner would be liable for the independent or unauthorized actions of other partners or their misconduct. The liabilities of the partners who are found to have acted for any fraudulent purpose shall be unlimited for all or any of the debts or other liabilities of the LLP;
The LLP has to maintain annual accounts reflecting true and fair view of its state of affairs. A statement of accounts and solvency must be filed by every LLP with the Registrar every year.
A firm, private company or an unlisted public company has option to convert into LLP. From the date of certificate of registration issued by the Registrar, all tangible (moveable or immoveable) and intangible property vested in the firm or the company, all assets, interests, rights, privileges, liabilities, obligations relating to the firm or the company, and the whole of the undertaking of the firm or the company, shall be transferred to the LLP.