The Limited Liability Partnership (LLP) in India was form after January 2009, which gave it instant success with startups and business services. Limited Liability Partnership Registration in Chennai, governed by the Limited Liability Partnership Act, combines the benefits of a limited liability company partnership. The LLP was introduced to provide a business that is easy to maintain and helps owners provide limited liability.
Partners in LLP
- Anyone can be a partner in a corporate or corporate LLP.
- The LLP must have at least two partners and there is no restriction on the maximum number of partners.
- The Act provides that, in a situation where the number of partners is one and such LLP has been doing business with the sole partner for more than six months and then such partner, if he is aware of such situation, he will be liable for the individual LLP. Responsibilities.
- The LLP Act provides that an LLP must have at least two designated partners who will be individuals and at least one of them must reside in India.
Responsibilities of partner
LLP registration in Chennai is responsible for performing all acts, matters and things as may be required in respect of compliance with the law made by; and liable for all penalties imposed on the LLP for any violation of those provisions.
The LLP Act provides for a period of 30 days to fill the vacancy of a designated partner. If no designate partner is appoint, or if there is only one designated partner at any one time, each partner in the LLP will be consider a designate partner.
If the LLP fails to appoint designated partners, the LLP and each of its partners will be penalize on the LLP, if ratified by all partners after its inclusion.
Contributions may include other benefits such as money, tangible or intangible assets, or promissory notes, services rendered, or contracts entered into. The liability of the partnership to contribute money or assets to the LLP shall be in accordance with the LLP agreement.
Liability of partners in LLP
Each partner of the LLP will, for the purpose of the LLP’s business, be an agent of the LLP, but not of the other partners. The liability of the partners will be limit except for unauthorized acts, fraud and negligence. But the spouse will not be personally responsible for the unjust acts or the exclusion of any other spouse. The liability of a limited liability partnership, arising in the contract or otherwise, is the duty of the limited liability partnership only. LLP liabilities will be met from the assets of the LLP.
If there is reduction of members in the LLP, then the law provides for at least two partners to continue the LLP. If at any one time the number of partners in a limited liability partnership in Chennai is reduced to less than two and the limited liability partnership carries on the business for more than six months, when the number is so low, the person who is the sole partner of the limited liability partnership after six months The business carries on in this way and is aware of the fact that it trades with it alone, will be personally liable for the limited liability partnership obligations incurred during that period.
Partner by holding out
The law stipulates that any person (who is not a partner in any LLP) who presents himself / herself through spoken or write or conduct, or knowingly allows himself / herself to become a partner in an LLP (known as a partner by holding out) Anyone who believes in giving credit to the LLP for such representation is liable, whether he represents himself or the person represent as a partner or does not know that the representation has reach the person to be given credit. It is further provide that any credit receive as a result of such representation by the LLP, the LLP, without prejudice to the liability of the person, represents itself or is represented as a partner, will be liable to the extent of the credit received by or through Financial benefits.
The Act also provides that where the business continues in the same LLP name after the death of the spouse, the continued use of that part or part of the name of the deceased partner will not legitimize itself. Is responsible for the act.
Scope of LLP Act 2008
A limited liability partnership in Chennai is the formation of a study and a partnership registered under registered law. A limited liability partnership is a corporate body form and incorporate under this Act and is a separate legal entity from its partners. There will be a permanent heir in a limited liability partnership. Any change in the partners of a limited liability partnership will not affect its existence, rights or the obligations of a limited liability partnership.
A limited liability partnership agreement is a written agreement between the partners of a limited liability partnership or a limited liability partnership and its partners that sets out the mutual rights and duties of the partners and their rights and duties in relation to such a partnership. As any person who becomes a partner in a company
Assignment of partnership rights
The right of the partner to share in the profits and losses of the LLP and the transfer in full or in part to receive the distributions in accordance with the LLP agreement is appropriate. The transfer of any right by any partner does not automatically cause the spouse to separate or dissolve and wind up the LLP. Transfer of rights, participation in the management or conduct of LLP activities or transfer of information relating to LLP transactions or access to information is not entitle to assignee.
Ease of formation
State law regulates the requirements for LLP formation in India. But in general it is relatively easy for eligible parties to create an LLP. LLP partners must often fill out a registration form and file with the relevant state agency, such as the Office of the Secretary of State. State laws may also allow an existing general partnership to convert their partnership into an LLP. As mentioned above, it can be helpful to develop an LLP agreement to spell out each partner’s role and to identify each partner’s financial contribution and attendant’s profit and loss.