Limited Liability Partnership is a business firm with limited liability. LLP is giving you the advantage of ‘Company’ and ‘partnership’. LLP was passed under limited liability partnership act, 2008.This type of firm is superior to the partnership. In this case single person is not responsible for any misconduct. LLP do not have the concept of shared capital but the contribution of partners.
LLP is a unique form of Business in which partners are limited to their capital contribution.LLP requires fewer compliance formalities. Business is flexible because partners can decide how they will individually contribute to the business operations.LLP is beneficial because no tax is levied on a distribution of profits amongst the partners.
Duties and Rights of the partner in LLP
- In LLP each partner has the right to take part in the conduct of Business.
- In LLP every partner has the right to access copy of the books of account.
- In LLP every partner is bound to attend diligent duties in the conduct of business.
- In LLP business there are factors which similar to the corporate such legal duties and obligations of limited partners.
- Partners in a limited liability partnership have a full managerial function.
- The difference in the process of ordinary matters may decide by the majority of the partners.
- Every partner has the right to present his/her opinion before the matter is decided.
- Legal representative has the right to access in case partners dies.
- The legal right of partners is the capacity to transact business with the limited liability partnership.
- Partners accept full personal responsibility for a partnership liability.
- Partners have right to vote without incurring liability. They are allowed to vote for amendments and for the dissolution.
- Partners have the right to vote for fundamental changes.
- Property rights are according to the development in the system of capital.
Authority of partners
- Submission of the dispute related to the Business.
- Partners can open an account on behalf his/her name.
- Compromise and relinquish on any portion by the claim of LLP.
- The suit can be withdrawn on behalf of the LLP.
- Acquire and transfer immovable property of LLP.