LIMITED LIABILITY PARTNERSHIP ACT, 2008 – THE SPECIAL FEATURES
Advantages of LLP over mere partnership :-
Ø LLP is a legal entity and hence could be sued or it can use others without involving the partners. Moreover the partners would not be liable beyond the money (represented by partnership assets) they have contributed or have agreed to contribute to the Capital. Thus there would not be called upon to contribute to the liability incurred by any other partner in relation to the LLP during its conduct of the affairs llp Registration Coimbatore.
Ø The retirement or death of a partner would not dissolve the LLP but the LLP would continue to exist even after that without the necessity of any formality for renewal of LLP. Since a LLP is a legal entity, the properties acquired by the LLP could be held in its own name and need not be in the name of the partners.
Ø Whereas a partnership can be formed either orally or by a deed of agreement whether registered or not, LLP is informed by an incorporated document and an LLP Agreement, thus giving shape to some kind of concreteness, discipline and added legality. Whereas a registered or unregistered partnership cannot have more than 20 partners. LLP can be a partnership or unregistered partnership cannot have more than 20 partners. LLP can have more than that number since no upper limit has been laid down by the Act. The LLP can be a partnership between individuals and corporate entities whether resident or nonresident. There are no restrictions as regards the number of LLPs in which the same person could be a partner or even a designated partner llp Registration Coimbatore.
Ø The responsibility for carrying out the obligations laid down by LLP Act are to be carried out by the designated partners and other partners not designated as such would not be personally liable for any omissions for fulfilling the legal obligations of LLP prescribed under the Act except under special circumstances such as by misrepresentation that he is a designated partner though in a partnership every partner would be liable. Whereas an individual partner would not be able to conduct business transactions with the partnerships firm of which he is a partner, a partner of LLP in his separate capacity as a ‘legal person’ can do business with the LLP since the LLP is a separate legal entity by itself llp Registration Coimbatore.
Ø Whereas every partner can be an agent of LLP, he is not deemed to be an agent of other partners of LLP in so far as the activities of LLP is concerned. Thus he is saved from any legal liabilities or offences committed by other partners representing the LLP can allocate / assign as a nominee a minor to receive a particular share in the ‘benefits’ accruing to him as his share llp Registration Coimbatore.