Right to Participate in Business Every partner has the right to actively participate in the management of the LLP Partners can be involved in decision-making, operations, and policy formulation No partner can be excluded from participation unless agreed in the LLP...
Nature of Ownership An LLP does not have a share capital structure like a company Ownership in an LLP is based on capital contribution and the LLP Agreement terms There are no shares, shareholders, or equity instruments in an LLP Partners are recognized through...
Meaning of Capital Contribution Capital contribution in an LLP refers to the amount invested by each partner to form and operate the LLP It can be in the form of cash, property, assets, or services agreed upon Each partner’s contribution is recorded in the LLP...
General Business Scope An LLP can engage in any lawful business activity as permitted under Indian law It is suitable for trading, manufacturing, professional services, consulting, and more The business activity must be clearly stated during incorporation Activities...
Statutory Timeline The LLP Agreement must be filed within 30 days from the date of incorporation This timeline is mandated by the Limited Liability Partnership Act, 2008 The countdown begins from the date mentioned on the Certificate of Incorporation Delayed filing...
Definition and Purpose The LLP Agreement is a legal contract between the partners of a Limited Liability Partnership It governs the mutual rights, duties, and obligations of partners and the LLP The agreement is binding upon all partners and defines the structure of...
Basic Structure of the Name The name of an LLP must end with “Limited Liability Partnership” or “LLP” It must include a prefix or descriptive term that reflects the business activity The proposed name should be distinct and meaningful in context Generic names without...
Duration of Validity The reserved name for an LLP is valid for 90 days from the date of approval This validity period is granted by the Registrar of Companies (RoC) The name must be used to incorporate the LLP within this timeframe If not used within 90 days, the name...
Importance of Name Reservation Name reservation is a mandatory precondition for incorporating an LLP in India It ensures that the chosen name is unique and legally available The process helps prevent duplication or confusion with existing entities It provides...
Regulatory Oversight The Ministry of Corporate Affairs (MCA) is the primary regulatory authority for LLPs in India It administers and enforces the Limited Liability Partnership Act, 2008 MCA ensures LLPs operate by applicable laws and statutory provisions It monitors...