LIMITED

LIABILITY
PARTNERSHIP-
INTRODUCTION
MEANING OF
LLP
The proper definition of
concept of Limited
Liability Partnership does
not find any place in the
LLP Act 2008 Sec.2(1)
defines LLP as "an
incorporated partnership
formed and registered
under the act"
HOW LLP IS
HYBRID
BETWEEN
COMPANY AND
PARTNERSHIP
 The following points suggests how LLP is a hybrid of partnership and a company :-

Separate Legal
Artificial Legal Person
Body Corporate [Sec.3(1)] Entity [Sec.3(2)]
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1

2 4 6

Perpetual Succession Common Seal Limited liability

4
 RELEVANCE OF LLP
The main objectives of Limited Liability Partnership form is to
enable entrepreneurs, professional and enterprises providing
services of any kind or engaged in scientific and technical
disciplines to form commercially efficient vehicles suited to
their requirements.
 PARTNERSHIP
• The Indian Partnership Act, 1932.
• Partnership firm is the totality of its
partners.
•  There is no guidelines regarding the name.
• It is created by an agreement between the
partners.
• Minors can be admitted as partners.
• Registration is voluntary.
• Managed by partners with agency
relationship with other partners.
LIMITED LIABILITY PARTNERSHIP
• The Limited Partnership Act, 2008. 
• It is a body corporate.
• Name should contain LLP or Limited
Liability Partnership as suffix. 
• Created by a legal process called
registration under the LLP Act.2008
• Minors cannot not be admitted to the
benefits of LLP.
• Registration is mandatory.
• Managed by partners or designated
partners.
 LIMITED LIABILITY COMPANY
• The Companies Act 1956
• Private company :-  Minimum –2,
Maximum – 50  • Minimum – 2, Maximum – No such
       Public company :- Maximum - 50,
Minimum-7
• Liability of a member is limited .
• Managed by Board of Directors.
• Created for economic or
non-economic purpose.
• The Companies Act 1956 does not
provide any provision regarding
Whistle Blowing.
LIMITED LIABILITY PARTNERSHIP
• The LLP Act 2008.
limit.
• Liability of a partner is limited .
• Managed by partners including the
designated partners.
• Created for economic or profit
purpose.
• The LLP Act 2008, has provided adequate
protection to the whistle blower
under section 31.
How LLP is an improvement over
partnership
Separate Legal Entity

Limited Liability

Perpetual Succession

Freedom of Management

Ability To Purchase Property

Whistleblowing

Partners Not Agents

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