India’s LLP Statistics by State
Aug. 24 – India’s Limited Liability Partnership (LLP) is an optional corporate business medium that offers the remuneration of limited liability, but allows its members the elasticity of organizing their internal structure as a partnership based on a mutually arrived agreement. Some of the features of LLPs are as follow:
- It is a corporate body with independent legal entity from its partners. The common rights and duties of the partners of an LLP are governed by the LLP Agreement
- An LLP is accountable to the degree of its resources. The partner’s liability is limited to the extent of agreed contribution (capital) in the LLP Agreement
- No partner is legally responsible on account of the independent or unauthorized action of other partners or for their misconduct
- Every LLP should have at least two partners with at least two individuals as “designated partners,” of whom at least one must be resident in India. Only designated partners are responsible for compliance with the Act
- A firm, private company or an unlisted public company can be converted into an LLP
- The Act empowers the central government to apply provisions of the Companies Act, 1956 as appropriate, by notification with such changes as deemed necessary, in the LLP Act, 2008
- The winding up of LLP is either voluntary or by the High Court
There are many companies which have converted into LLPs in the past three years. The statistics given below are according to the various states.
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