Limited Liability Partnership Act

The Limited Liability Partnership Act, 2008 of India, was passed by the Indian Parliament on December 2, 2008. It provides a new legal framework for forming limited liability partnerships (LLPs). The LLP is an association of two or more persons who have agreed to be jointly and severally liable for the obligations incurred by the LLP. The LLP has no legal personality and does not own any property. It is governed by a contract that sets out its members’ rights, duties, and liabilities. 

These partnerships are formed to mitigate risks associated with high capital requirements and provide flexibility in business structure. 

Procedure of Registration of the Act 

The Limited Liability Partnership Act, 2008 of India, which came into force on April 1, 2008, is the law that governs the registration of limited liability partnerships in India. 

The Limited Liability Partnership Act, 2008 of India is the law that governs the registration of limited liability partnerships in India. The primary purpose was to protect the partners from being held liable for any debts and obligations incurred by the association. 

As per this Act, all partners are treated as mere passive investors and not as active partners in a limited liability partnership. The Act also provides for a procedure for registering a limited liability partnership. 

Procedure for Incorporating Limited Liability Partnership Act 

The LLP Act provides a framework for regulating the business affairs of limited liability partnerships. It also defines what constitutes a partnership, how it can be formed, dissolved, and other important terms related to this type of entity. 

Incorporating a limited liability partnership is a procedure to create the legal entity known as a limited liability partnership. 

The articles of incorporation for a limited liability partnership must include the following: 

• The name, address, and registered agent of the LLP 
• The name, address, and registered agent of each general partner
• The name and address of each member 
• The date when formed the LLP was formed 
• A brief statement about what type of business or profession is being conducted by the LLP 

Agreement Procedure

In a Limited Liability Partnership Agreement, the agreement has to be in writing and must have the following: 

• The parties’ names and addresses
• The type of limited liability partnership and its state of formation 
• The date on which the limited liability partnership is formed and its duration, 
• The name of the limited liability partnership’s official agent for service of process (if applicable)
• A list of all general partner members of the limited liability partnership 

Designated Partner

The LLP Partnership Act India legislation makes it mandatory for all partnerships to have a number. By LLP PARTNERSHIP (Amendment) rules which are enacted in 2015 were passed to ensure that the partnership has a unique number and that no two associations have the same number. This law ensures no confusion and that any partner can identify their partnership with ease. 

The LLP Partnership (Amendment) Act was passed in March 2018 and it came into force on April 1, 2018. This Act results from the amendments introduced by the Finance Act 2017 and applies to all limited liability partnerships registered on or after April 1, 2018. 

The LLP Partnership Act India provides for the following: 

• Termination of partnership by agreement 
• Partner’s liability for wrongful acts
• Transfer of partnership property
• Partnership dissolution by agreement 
• Partners’ liability for wrongful acts committed before dissolution 
• Transfer of partnership property before dissolution

LLP is an acronym for Limited Liability Partnership. LLP is a form of business entity that allows partners to share the risks and benefits of the business without having to transfer ownership. 

The Amendment Act was introduced in 2017 to change the laws surrounding partnerships in India. It has replaced some provisions of the earlier Act, which was enacted in 1856. This new law will help Indian companies grow and expand their businesses by lowering their entry barriers and making it easier to raise capital from investors. 

It has a provision that states that the designated partners will be punished if they contravene any Act’s requirements or regulations. The punishment can be imprisonment for up to six months and an amount of Rs. 50,000/- or both. 

Many designated partners have been trying to comply with all the conditions to avoid any risk of punishment leading to changes in their behaviour. They are now more careful about compliance with LLP’s rules and regulations, following all their procedures.

Conclusion

The Limited Liability Partnership Act, 2008 of India, is a law that governs the affairs of limited liability partnerships. This Act regulates the formation and dissolution of LLP concerning its partners, its business and experiences, and the rules governing its internal functioning. The LLP Partnership Act India aims to reduce litigation, simplify partnership agreements, and increase transparency, among other things. In March of this year, India passed the LLP Partnership (Amendment) Act. It has taken effect from April 1, 2018. This Act is the consequence of the Finance Act 2017 changes and applies to all limited liability partnerships formed on or after April 1, 2018.