LLP Registration

According to the Ministry of Corporate Affairs(MCA), Limited Liability Partnership (LLP) is an alternative corporate business type that gives the benefits of limited liability of a company and the flexibility of a partnership. As the name indicates, partners in LLP have limited liability.

This means that personal assets/resources of the partners cannot be used for paying off the debts of the company.Partners are liable only to the level of their agreed contribution in the LLP. However, the LLP is liable completely to the level of its resources. Since many business executives are opting for this, it has become a very popular type of business in the recent past.

There are many numbers of partners in the firm. Each partner is liable for their own acts and not legally responsible for other’s misbehavior issues. In this method, individual partners are protected from the joint liability that is created by another partner’s illegal business decisions or any wrongdoing.

In case of change of allies/partners, the LLP will continue its existence; entering into contracts and holding property in its own name. An agreement between the partners and the LLP rules the mutual rights, duties, and responsibilities of the partners.