Nature of Limited Liability Partnership [Sections 2 — 10]

Three friends start a design studio in Belapur. One signs a lease for the office, the studio later loses a big client, and the landlord wants his rent. Under the old partnership law the landlord could go after each friend's flat and savings. Is there a way to run the same business together and still keep the family home out of the firm's debts? The Limited Liability Partnership Act, 2008 was written to give that answer, and its first ten sections explain what kind of creature an LLP is.

In two minutes

An LLP is a partnership that is also a company-like legal person: it is a body corporate, separate from its partners, with perpetual succession, run under the LLP Act and not the Indian Partnership Act 1932.

The rest of this chapter

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