LLP

1272 views 6 replies

I am interested in the formation of LLP. Can a LLP raise capital by
the way of equity? No clarification is found on this point in
comparison with company. Please clarify - Dr. Jayant Watve, Kolhapur

Replies (6)

In my opinion a LLP can not raise capital by way of equity from public.

For detailed comparison b/n LLP and Co. refer following link.  For your question regarding raising of capital refer Point 17-18 given in the link.

https://www.llpinindia.com/display.asp?id=252

 Hey what question is this. Raising equity from public is allowed only for public limited company. LLP is partnership.

1. Formed by agreement and not by share certificate.

2. Partners are jointly and severally liable. 

Not possible.

Originally posted by :Sathyanarayanan. B.Com. CA PCC
"  Hey what question is this. Raising equity from public is allowed only for public limited company. LLP is partnership.
1. Formed by agreement and not by share certificate.
2. Partners are jointly and severally liable. 
Not possible.
"

I would like to make a correction in the above statement. In an LLP a Patener is not Joint and severally liable.  That is what makes it different from a traditional partnership. So the second statement above is wrong.

 Yes.

u can not raise capital from equity

Originally posted by :Sathyanarayanan. B.Com. CA PCC
"  Hey what question is this. Raising equity from public is allowed only for public limited company. LLP is partnership.
1. Formed by agreement and not by share certificate.
2. Partners are jointly and severally liable. 
Not possible.
"

 

sir is absolutely right..!


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