LLP: Limited Liability Partnership
LLP Full Form
LLP full form stands for Limited Liability Partnership. A limited liability partnership (LLP) is a partnership in which some or all of the partners (subject to jurisdiction) have limited liability.
It can demonstrate the elements of partnerships and corporations. In LLP, not every partner is responsible or liable for the misconduct or negligence of the other partner. In some countries, at least one person in an LLP should be known as a “joint partner” who has unlimited liability for the company.
In an LLP full form (Limited Liability Partnership), some or all of the partners have a form of limited liability like the shareholders of the corporation. Unlike corporate shareholders, partners have the right to conduct business directly. This is a significant difference from the traditional partnership under the UK Partnership Act 1890, in which each partner has a shared responsibility.
Limited liability partnerships differ from limited partnerships in some countries, which may allow all LLP partners to impose limited liability, while a limited partnership may require at least one unlimited partner and others allow a passive and limited liability investor to handle this role. LLP is more suitable for businesses in which all investors want to play an active role in management.
- All partners should be agents of a limited partnership, but not other partners.
- Partners are required to visit the Office of the Registrar of Companies (ROC) and sign the LLP agreement.
- LLP provides flexibility in making changes.
- LLP also has a permanent heir, meaning the company will not be dissolved if the partner dies or becomes insolvent.
- It is separate from its partners or separate from the partner firm. If a firm suffers heavy losses, no one can touch their personal wealth. Only those money invested in the business will be lost.
- At least one of them must be a citizen of India, but there is no limit to the maximum number of partners, and foreign partners are also permitted.
What Is The Full Form Of LLP?
LLP full form stands for Limited Liability Partnership. It is a partnership in which some or all of the partners (subject to jurisdiction) have limited liability. LLP is suitable for businesses in which all investors want to play an active role in management.
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