The concept of LLP was introduced in India by LLP Act ,2008.The main objective of introducing the LLP is that, providing the limited liability to its members and to maintain easily. LLP is a hybrid of partnership firm and a company. Registrar of companies the administrative authority in LLP. It should be filed within 60 days from the end of closure of financial year. The unique feature of LLP is that one partner is not liable for the negligence or misconduct of another partner and it has an integration of benefits of a Private Limited Company and Partnership Firm. Limited Liability Partnership is examined as several legal entity and partners are liable only to the extent of their capital contribution.
LLP is considered a separate legal entity and artificial judicial person as per the Act. Being an artificial judicial person. The Limited Liability Partnership (LLP) can buy its own property and incur its own debts. Partners of the LLP has liability limited to their capital for debts of the LLP.
LLPs in India must file its Annual Return within 60 days from the end of close of financial year and Statement of Account & Solvency within 30 days from end of six months of close of financial year. Unlike Companies, Limited Liability Partnership mandatorily have to maintain their financial year, as April 1st to March 31st.
There is no minimum capital requirement in LLP, it can be formed with least capital
An LLP requires minimum of 2 members to start a company, there is no maximum number of members is specified
The cost for incorporating LLP is less then comparing to the cost of incorporating private or public limited company
LLP is required to file only the Annual Return & statement of accountancy
Interest in LLP can be easily transferred by introducing new Designated Partner in LLP. It is a separate legal entity and changing a Designated Partner does not affect its existence
A person can be a partner, employee or creditor of a LLP. There are different contracts with the same person in different capacities.