LLP
or Limited Liability Partnership (LLP) is a partnership in which some or all
partners (depending on the jurisdiction) have limited liabilities. It therefore
exhibits elements of partnerships and corporations. In an LLP, one partner is
not responsible or liable for another partner's misconduct or negligence. In an
LLP, some partners have a form of limited liability similar to that of the shareholders
of a corporation. In some countries, an LLP must also have at least one thing
called as a "general partner" with unlimited liability. Unlike
corporate shareholders, the partners have the right to manage the business
directly. In contrast, corporate shareholders have to elect a board of
directors under the laws of various state charters. The board organizes itself
(also under the laws of the various state charters) and hires corporate
officers who then have as "corporate" individuals the legal
responsibility to manage the corporation in the corporation's best interest. An
LLP also contains a different level of tax liability from that of a
corporation. Limited Liability Partnership (LLP) has been introduced in India
by way of Limited Liability Partnership Act, 2008. The basic premise behind the
introduction of Limited Liability Partnership (LLP) is to provide a form of
business organization that is simple to maintain while at the same time
providing limited liability to the owners. A Limited Liability Partnership
combines the advantages of both the Company and Partnership into a single form
of organization and one partner is not responsible or liable for another
partner's misconduct or negligence. Therefore, all partners have a form of
limited liability for each individual's protection within the partnership,
similar to that of the shareholders of a corporation. However, unlike corporate
shareholders, the partners have the right to manage the business directly. We
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