LIMITED LIABILITY PARTNERHIPS-LLP

Hi Mr.Sudhir,

LLP is a new concept in India.  It shall be registered under the LLP Act, 2008.  Application for registration shall be fired befroe the Registrar Companies as of today under the act. 

LLPs are meant for professionals like accountants, Chartered Accountants, Comopany Secretaries and Advocates.  Every needs services of these professionals.  For this purpose they approach different persons.  They have to choose individual professionals to meet their day to day requirements in buiseness.  These professionals may form LLPs either jointly or seperately(for each profession).  The companies can get better quality services from these LLPs. 

Partners of LLP are liable only to the extent of their contribution to the LLP.  It is a legal entity having perpetual succession.  The partners  of LLp are not responsible for the acts done by the other partners.  Absense of vicarious liability is its essence.

IS MEANT FOR PROFESSIONALS ONLY ? I HAVE READ ABOUT LLP OF SOME OF COUNTRIES AND IN SOME PARTICUALR COUNTRIES IT IS ONLY FOR PROFESSIONALS. IS THERE ANY BAN HAS BEEN PRESCRIBED IN INDIA FOR LLP FOR OTHER THAN PROFESSIONALS. 

SIR, CANT SAY EXACTLY....BUT THE RULES SPECIFICALLY SAY  "ANY TWO OR MORE PROFESSIONAL"S

SO IT IS IMPLIED FROM THESE WORDS THAT IT IS MEANT ONLY FOR PROFESSIONALS.

PLZ READ PG. 7 OF THE ATTACHED FILE

Mr. Sudhir,

Yes.  You are right.  Small and Medium Enterprises(SME) can, also, form an LLP.