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What is LLP?
LLP is referred as Limited liability partnership. In an LLP all partners have Limited liabilities. For make an LLP, required at least two person just in case any Body company may be a partner, than he are going to be needed to nominate any individual (natural) as its politico for the aim of the LLP.
Following will become a partner within the LLP:
1. Company incorporated in and out of doors Asian country
2. LLP incorporated in & outside Asian country.
3. People resident in & outside Asian country.
Difference between LLP & a Company:
A basic distinction between an LLP and a joint stock company lies in this the inner governance structure of a corporation is regulated by statute (i.e. corporations Act, 1956) whereas for Associate in Nursing LLP it might be by a written agreement between partners.
- The management-ownership divide inherent in an exceedingly company isn't there during a liability partnership.
- LLP can have a lot of flexibility as compared to a corporation.
- LLP can have lesser compliance needs as compared to a corporation.
For the aim of forming a LLP, there ought to be agreement between the partners interested in forming the LLP to be referred to as LLP Agreement. The same Agreement forms the premise of the formation of LLP and lays down its institution structure. The LLP agreement is an agreement between the Partners and between the LLP & its partners.
The most essential contents of Agreement are:
- Name of LLP.
- Name of Partners & selected Partners.
- Form of contribution.
- Profit sharing magnitude relation.
- Rights & Duties of Partners.
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