Separate Legal Entity An LLP is recognized as a separate legal entity distinct from its partners. It can own, hold, and transfer assets in its name. The LLP can enter into contracts and legal agreements independently.y It can sue and be sued in its name. The identity...
Limited Liability Protection In an LLP, partners have limited liability, meaning their personal assets are protected from business debts In a traditional partnership firm, partners have unlimited liability, making them personally liable for all obligations LLP shields...
Egalitarian Requirement of Partners As per the Limited Liability Partnership Act, 2008, an LLP must have at least two partners. These partners can be either individuals or bodies (like companies or LLPs). However, there are specific rules concerning designated...
Meaning of DPIN A Designated Partner Identification Number (DPIN) is a unique identification number allotted to an individual intending to become a designated partner in a Limited Liability Partnership (LLP). It is issued by the Ministry of Corporate Affairs (MCA) in...
Meaning of Designated Partner A Designated Partner is a partner specifically responsible for ensuring legal and regulatory compliance under the LLP Act, 2008. This role is distinct from that of an ordinary partner and carries additional statutory duties. They act as...
Designated Partners Designated partners are responsible for the regulatory and legal compliance of the LLP. At least two designated partners are mandatory in every LLP. One of them must be a resident in India, as defined by the LLP Act. They must obtain a Designated...
Minimum Number of Partners An LLP must have at least two partners at the time of incorporation. These partners can be individuals or bodies. A partnership cannot be formed with a single individual. If the number falls below two, the LLP must add a partner promptly....
Separate Legal Entity An LLP is recognized as a distinct legal entity from its partners. It can own assets and enter into contracts in its name. It can sue and be sued independently of its partners. The existence of the LLP is not affected by changes in partnership....
Eligible Individuals Any person, whether Indian or a foreign national, can become a partner in an LLP. The individual must be competent to contract under the Indian Contract Act, 1872. A minimum of two partners is required to form an LLP. At least one designated...
Preliminary Requirements A minimum of two partners is required to start an LLP. At least one designated partner must be a resident of India. All designated partners must obtain a Digital Signature Certificate (DSC). A Designated Partner Identification Number (DPIN) is...