History of LLP
As per the data the LLP Act of 2008, which went into force on April 1, 2009, brought the concept of LLP to India from the United States, where it was first implemented and rectified on a timely basis. The practical LLP is not supported by the terms of the 1932 “Indian Partnership Act,” which was standing independent lawmaking. So, that was a great relief to the supporters, especially the experts like cost accountants, advocates, company secretaries, chartered accountants, and some other professionals. The mixed model of LLP solution frees multiple professionals, business owners, and service providers to organize and work in an effective and creative way as per the requirement to compete digitally in the global market. The Government passed the LLP Act 2008, which went into force on April 1, 2009, in order to alleviate the constraint and due to its registration requirements with the ROC or Registrars of Companies and compliance with the LLP Act of 2008, an LLP is considered as a legal entity.
LLP Full Form
LLP (Limited Liability Partnership) is a corporate entity distinct from its affiliates and has a fixed succession plan. This special business structure with a minimal cost of compliance can combine the limited liability advantages of a corporation with the flexibility of a typical partnership. LLPs are very flexible legal and tax products that allow partners to achieve economies of scale by working together and reducing their disadvantages from the actions of their counterparties as required. Basically, it has been discovered that before causing too much excitement for any legal product as well as it is important that a person analyses legislation in their respective country and their own state. The fundamental goal of any partnership is to produce a good through the combined efforts of two or more parties in this process which is an extremely technical way of describing two or more people cooperating to gather funds.
Table of Content
- What is the full form of LLP?
- History of LLP
- Features of LLP
- Advantages of LLP
- Disadvantages of LLP
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