BY SUSHMA GOWDA
INTRODUCTION
Limited liability Partnership Act 2008 was enacted by the parliament of India to sanction the legal concept of limited liability partnership. It was enacted on 12th December 2008, Assented on 7th January 2009, and lastly it was Commenced on 31st March 2009.
Limited Liability partnership is a alternative form of corporate business. It is the combination of Company and partnership.
In Limited Liability partnership must have at least two partners and at least two designated partners, one among them shall be resident in india.
INCORPORATION
Limited Liability of Partnership Act, 2008 can be a body Corporate and can’t be incorporated by one person company.
Limited Liability partnership takes place by Contractual Agreement between parties. During Incorporation Limited Liability partnership requires less Compliances as compared to other Organization.
PERPETUAL SUCESSION & FLEXIBILITY
Limited Liability partnership is separate from its members. Limited Liability partnership is a Artificial legal person having separate legal entity, it have more flexibility as compared to other organization.
Limited Liability partnership can do the transaction from its own name, Deal with Asset and liability on its own name. LLP is different from its Member.
BENEFIT OF LIMITED LIABILITY PARTNERSHIP
1. Limited Liability partnership enjoys the combination of both Company and Partnership Duties as Body Corporate.
2. Limited Liability partnership continue its existence even after changes in its members.
For Example:
In the Case of ABC LLP all the Members went to trip through Chartered Plane they caught with an Accident in such Accident all the Members of the plane died on spot. But the ABC LLP didn’t get Dissolved because of such incident it continued it existence.
However Limited Liability partnership will end its Existence if they need to comply with the legal obligation as per the tribunal.
3. Limited Liability partnership can enter into the Contract and hold Property, can open bank account.
4. In Limited Liability partnership partners Liabilities are limited to the extent they are liable as per the agreement.
5. Limited Liability partnership Common seals use in share certificate, share warrant or any other Legal Document.
6. Limited Liability partnership can be set up by the Professionals and businessmen.
CASES
(DAIMLER CO. LTD. VS CONTINENTAL TYRE AND RUBBER CO.(1916) 2 A.C. 307)
In this Case of Limited Liability partnership tribunal lifted the Corporate Veil when the company was entertaining enemy character.
ACCOUNTING AND AUDITING THRESHOLD LIMIT
Audit of Accounts is compulsory if the turnover of Limited Liability partnership is more 40 lakhs in any financial year or contribution by partners exceeds more than Rs 25 lakhs.
PENALTY FOR THE CONTRAVENTION OF SECTION 7 8 & 9
If Limited Liability partnership Contravenes the provision of Sec 7(1) they shall be punishable with the fine which shall not be less ten thousand rupees but may extend to five lakhs rupees.
If Limited Liability partnership contravenes the provisions of sub section (4) and Sub-section (5) of Section 7, Section 8 or Section 9 every partners in the Limited Liability partnership shall be punishable with the fine which shall not be less than ten thousand rupees but may extend to one lakh rupees.
REFERENCE: For any form filing visit www.mca.gov.in
