The Limited Liability Partnership Act, 2008 came into effect on 31st March, 2009 for the reasons as stated above. Being a part of the Indian corporate structure it is organized as follows:
Features of Limited Liability Partnership Act, 2008
1) Like any other Partnership firm, LLP is subject to income tax.
2) It protects individual partners from the joint liability created by another partner’s misconduct or wrongful business decisions.
3) LLP has a separate legal entity which is distinct and separate from its owners unlike a partnership. Partners may come and go but the firm continues to exists due to its perpetual succession like a limited liability company. There is no limit on the maximum number of members as it is not governed by the Indian Partnership Act, 1932. As per the LLP Act, 2008 at least one partner in the LLP should be an Indian Citizen and an Indian National.
4) The authority to control and register LLPs is the Registrar of Companies.
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