LLP Registration

Service Details

Partnerships is one of the most widespread business structure for businesses which includes more than one proprietor. A large number of businesses, varying from retail stores to bookkeeping firms, are controlled as partnerships. A business partnership is a business structure which is constructed for earning profits and are usually governed by two or more persons. A partnership firm can any have any number of members but it should have a minimum of two members . A business partner is a co-holder of the business. IN most of the cases business partnerships are general partnerships, which means that all partners have accountability for the business and limitless liability for the financial obligations of the business. This means that common partners share both the profits and the losses of the business. Limited Liability Corporate (LLP) is a body corporate having separate legal identity. In India, LLP is governed by the Limited Liability Partnership Act, 2008. A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities. It therefore exhibits elements of partnerships and corporations. In an LLP, one partner is not responsible or liable for another partner's misconduct or negligence. This is an important difference from the traditional unlimited partnership under the Partnership Act 1890 (for the UK), in which each partner has joint and several liability. In an LLP, some partners have a form of limited liability similar to that of the shareholders of a corporation. In some countries, an LLP must also have at least one person known as a "general partner" who has unlimited liability of the company. Unlike corporate shareholders, the partners have the right to manage the business directly. In contrast, corporate shareholders have to elect a board of directors under the laws of various state charters. The board organizes itself (also under the laws of the various state charters) and hires corporate officers who then have as "corporate" individuals the legal responsibility to manage the corporation in the corporation's best interest. A LLP also contains a different level of tax liability from that of a corporation.