Salient features of LLP Act, 2008

Salient features of  LLP Act, 2008 and Statewise Lise of number of firms converted to the LLP during the last three years

Limited Liability Partnership Rules

The Limited Liability Partnership Rules, 2009 were notified on 01.04.2009. As on 08-08-2011, 5883 LLPs are registered all over India.

The Limited Liability Partnership (LLP) is an alternative corporate business vehicle that provides the benefits of limited liability but allows its members the flexibility of organizing their internal structure as a partnership based on a mutually arrived agreement.

The salient features of  LLP Act, 2008, inter alia,  are as follows:

1.       It is a body corporate with separate legal entity from its partners. The mutual rights and duties of the partners of an LLP are governed by LLP Agreement.

2.       LLP is liable to the extent of its assets.  Partner’s liability is limited to the extent of agreed contribution (capital) in the LLP Agreement.

3.       No partner is liable on account of the independent or unauthorized action of other partners or for their misconduct.

4.       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.

5.       A firm, private company or an unlisted public company can be converted into LLP.

6.       The Act empowers 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.

7.       The winding up of LLP is either voluntary or by the High Court.

 The number of firms converted to the LLP during the last three years, state-wise is as per annexure attached.

 This information was given by the Minister of State in the Ministry of Corporate Affairs Shri R.P.N. Singh today in  the Lok   Sabha in reply to a written question whether the Limited Liability Partnership Rules (LLPR) is functional in the country, the details of its goals and salient features; and the number of firms converted to the LLPR during the last three years, state-wise?

Annexure

The number of firms converted to LLP during the last three years,  state-wise is as under: