Limited Liability Partnership (LLP) Registration

A Limited Liability Partnership (LLP) is a partnership firm in which some or all partners have limited liability. It therefore exhibits elements of partnerships and body corporate. In an LLP, one partner is not responsible or liable for another partner's misconduct or negligence. This is an important difference from that of an unlimited or simple partnership. In an LLP, some or all partners have a form of limited liability similar to that of the shareholders of a body corporate. In some countries, LLP must also have at least one "General Partner" with unlimited liability.

This concept has been accepted in countries like U.S.A, U.K, Australia, and Germany. It is a form of business entity, which allows individual partners to be restricted from joint liability of partners in a partnership firm. The Liability of the partners incurred in the normal course of business is that of LLP and it does not extend to the personal assets of the partners. This is a great relief to the partners, particularly professionals like Company Secretaries, Chartered Accountants, Cost Accountants, Advocates and other professionals.

For a long time, a need was there provide a business format that would combine the flexibility of a partnership and the advantages of limited liability of a company at a low compliance cost. The Limited Liability Partnership is an alternative corporate business entity that provides the benefits of limited liability of a company but allows its members the flexibility of organizing their internal management on the basis of a mutually arrived agreement, as is the case in a partnership firm.