Chanakya Consultancy Services Pvt. Ltd.

   Limited Liability Partnership(LLP)

Limited Liability Partnership

Limited Liability Partnerships (LLPs) are commercial vehicles which combine features of partnership and company form of business. LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name.

Unlike in partnership, no partner is liable on account of the independent or un-authorized actions of other partners and accordingly individual partners are protected from joint liability created by another partner’s wrongful actions or misconduct.

Mutual rights and duties of the partners within a LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity.

Advantages of LLP

• It is based on agreement between partners
• Flexibility without imposing detailed legal and procedural requirements
• Can continue its existence irrespective of changes in partners
• Separate legal entity

Registration Process

• Apply for DPIN (Designated Partner Identification Number)
• Apply for LLP Name
• Filling of registration documents online
• Register LLP