Meaning Of LLP

Sir I want to know that what is the meaning for the limited liability partnership (LLP) so can you please tell me the same

[Pathak]

Hey a limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities.

It therefore exhibits elements of partnerships and corporations.

In an LLP, one partner is not responsible or liable for another partner's misconduct or negligence.

Salient features for the LLP

1. It is more flexible to organize the internal structure of LLP. Comparatively it is complex to organize the internal structure of a company.

2. There is no maximum limit for the no. of partners in LLP. In the private limited company shareholders are limited to the extent of 200 shareholders.

3. Raising and utilization of funds depends on the partners will. Funds can be bought and utilized only as per the norms listed under the Companies Act, 2013.

4. LLP is exempt of Dividend Distribution Tax (DDT). Company has to pay DDT on dividend distribution.

Demerits of LLP LLP as well have some limitations within. Some of them can be summarized as below.

Any act of the partner without the other partner, may bind the LLP
LLP Cannot raise money from public.
Angel Investor or Venture Capital Firms does not prefer LLP.

Application Process of LLP :-

Obtain Digital Signature for the partners.

Apply for the DIN ( Director Identification Number) Number which is necessary to
becoming a partner in the llp.

Apply for the Name Approval for the LLP Registration.

Issued the Certificate of Incorporation which is the proof for the registration.

File LLP Agreements and Open a Current Bank Account.