What is an LLP? Key Features of LLP?

What is an LLP?

An LLP is a body corporate formed and incorporated under the LLP Act, 2008. It has a separate legal entity distinct from its partners and offers limited liability protection to its partners. Unlike a traditional partnership firm, an LLP is governed by a statutory framework, ensuring better compliance and transparency.

Key Features of LLP?

Separate Legal Entity: An LLP can own property and enter into contracts in its own name.

Limited Liability: Liability of partners is limited to the extent of their capital contribution.

Perpetual Succession: The LLP continues to exist despite changes in partners.

No Minimum Capital Requirement: LLPs can be formed with any amount of capital.Flexible Management: Internal structure is regulated by the LLP agreement.

Note– the Limited Liability Partnership (LLP) has emerged as a popular business structure, offering a perfect blend of the flexibility of a partnership and the benefits of limited liability.