Limited Liability Partnership (LLP) company is widely accepted form of company registration in west and is gaining momentum in India as well now. Started in 2008, LLP registration has seen a phenomenal growth from 2011 to 2014. The cost of LLP incorporation is lesser than a Private Limited Company incorporation and compliances are less stringent.
LLP is governed by the Limited Liability Partnership Act 2008, which has come into force with effect from April 1, 2009. The Indian Partnership Act, 1932 is not applicable to LLP.
LLP is a body incorporate and a legal entity separate from its partners having perpetual succession, can own assets in its name, sue and be sued.
The partners have the right to manage the business directly, unlike corporate shareholders.
One partner is not responsible or liable for another partner’s, misconduct or negligence.