The full form of LLP is a Limited Liability Partnership. LLP is a partnership in which all or some partners have few liabilities which get approved by them. Here, no one is liable for another’s negligence & misconduct is the big difference in Joint Liability & LLP. In an LLP, all or some partners have a form of some liability similar to the case of the shareholder’s corporation. Unlike shareholders of a corporation, partners have the right to operate & manage the business directly. Some countries have rules by other terms, there should be one partner having as many liabilities as they, the personal assets can be sold to pay the dues or compensate the losses.
It is a form of partnership business that has elements of both a partnership and a corporation. It is a separate legal entity, but owners have limited liability.
LLP is known as Limited Liability Partnership. It is a partnership in which all or some partners have few liabilities which get approved by them. In an LLP, all or some partners have a form of some liability similar to the case of the shareholder’s corporation.
Furthermore, An LLP company in India has to follow the rules & regulations under the Limited Liability Act, 2008. Online registration could get only in 25 days. LLP is a legal entity if it is having an affiliation with ROC (Registrar Of Companies) under the LLP, 2008. If any LLP overcomes the rules of the act, it will be a punishable offense. Moreover, the minimum amount under LLP is Rs 10,000 & the maximum amount is Rs 100,000. If any partner is in default, they have to pay Rs 50 or Upto Rs 500 of every day of default.
Let’s know about the difference between LLP and partnership
LLP is a separate legal entity and can continue assets in its title. The situation of Partnership Firm does not have a separate identity from its Partners. The responsibility of Partners is narrowed to the length of their participation in LLP. Moreover, one partner is not interested or does not have existing responsibility for the acts of the added Partner.
The Rate of tax applicable to Limited Liability Partnership (LLP) is 30%. An LLP does not have shareholders or directors and is taxed like a partnership. The limited liability protection is provided by LLP and that is the most beneficial aspect of having a separate legal status.
There are some disadvantages to a Limited Liability Partnership (LLP), such as public disclosure of financials, comparatively higher income tax rates, a minimum of two members required to start an LLP, heavy penalties, no scope for equity investment, the mandatory presence of an Indian partner, transfer of ownership, etc.
| Term | Full Form |
| LLP | Limited Liability Partnership |
FAQ’s
The full form of LLP is a Limited Liability Partnership. LLP is a partnership in which all or some partners have few liabilities which get approves by them
LLP is short form of Limited Liability Partnership.
Limited Liability Partnership is full form of LLP.
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