Altacit Global, profile picture
Uploaded byAltacit Global
PPT, PDF5,941 views

Limited liability partnerships

This document provides an overview of limited liability partnerships (LLPs) under Indian law. It discusses the origin and key features of LLPs, including that they provide limited liability for partners like companies but also allow flexibility in internal structure like partnerships. The document outlines the formation process for LLPs in India and compares LLPs to partnerships and private companies. It also discusses advantages of the LLP structure.

Law◦

Embed presentation

Downloaded 98 times
CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com SUSHMA SOSHA PHILIP LIMITED LIABILITY PARTNERSHIPS An Overview
CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Introduction • LLP - alternative corporate business entity – hybrid. • Benefits of limited liability of a company - allows its members the flexibility of organizing their internal management on the basis of a mutually-arrived agreement - as in a partnership firm. • Useful for small and medium enterprises, enterprises in the service sector – including professionals’
CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Origin • USA – early 1990’s due to the collapse of real estate and energy prices • The failure led to bank and saving loan failures in turn • Since the amount recoverable from banks were small – efforts were made to recover these assets from lawyers and accountants • To prevent personal liability – LLP concept devised
CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com LLPs In India • Limited Liability Partnership Act, 2008 • First LLP in India – incorporated in 2009 • “A corporate business vehicle that enables professional expertise and entrepreneurial initiative to combine and operate in flexible, innovative and efficient manner, providing benefits of limited liability while allowing its members the flexibility for organizing their internal structure as a partnership.”
CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Salient Features/ Characteristics • LLP – Separate Legal Entity from the partners • Minimum of two partners requires • There must be at least two designated partners in every LLP of whom one shall be resident in India. • No requirement as to minimum capital contribution • Available to use by any enterprise • Perpetual succession • Mergers and acquisitions of LLPs may take place • Winding up - either voluntary or by the Tribunal to be established under The Companies Act, 1956. • The LLP Act 2008 enables the Central Government - apply the provisions of the Companies Act whenever appropriate - must issue notification to that effect provided
CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com LLP Agreement • It is a written agreement between the partners. • Determines mutual rights and duties of the partners and their rights and duties in relation to the LLP • It is not necessary to enter into an LLP agreement as per LLP Act,2008 • In the absence of LLP agreement, the mutual rights of partners & rights in relation to LLP will be determined as per Schedule I of the LLP Act,2008 – power to expel not provided herein • Advisable to create suitable LLPs depending on the type of business
CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Formation:
CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Comparison: PARTICULARS PARTNERSHIP COMPANY LLP Registration Optional Mandatory Mandatory Creation Contract Law Law Cost of Formation Nominal High – Rs. 6000/- and above Moderate – Between Rs. 500/- and Rs. 5000/- Distinct Entity Not a separate entity Separate Legal Entity Separate Legal Entity Perpetual Succession No Concept There is Perpetual Succession There is Perpetual Succession Legal Proceedings Only registered partnership may sue a third party Can sue and be sued Can sue and be sued Foreign Nationals Cannot be Partners Can be members Can be Partners Liability of Partners Unlimited Limited to shares of the members Limited except in certain cases Transfer of Shares Not Transferable Transferable Governed by the LLP Agreement Whistle Blowers No provision for protection in the No provision for protection in the Protection is provided
CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Conversion of Pvt. Ltd. Co./ Partnership into LLP • A firm, private company or an unlisted public company - option to convert into LLP. • Upon conversion - Registrar issues certificate to that effect. • After issuance of a certificate, all the property of the firm or the company, all assets, rights, obligations relating to the company shall be vested in the LLP - the firm or the company stands dissolved. • The Income tax law - modified - bringing the taxation aspects of conversion of Private Company or unlisted Public Company into an LLP. • There are no tax implications on conversion of a partnership firm into an LLP.
CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com LLP Advantages • Liability of each partner limited to share as per the LLP Agreement • Low Cost of Formation • Easy to form • Partners – not held liable for the acts of each other • Less restrictions and compliance enforced on LLPs by the Government • Can sue and be sued in its name – partners are not liable to be sued for dues against the LLP
CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com LLP Disadvantages • Cannot raise money from the public as a company does – cannot be formed for charitable purposes • Any act of the partner without the consent of other partners can bind the LLP. • Because of the hybrid form of the business, it is required to comply with various rules & regulations and legal formalities. • Difficult to wind up - Limited Liability Partnership (Winding Up and Dissolution) Rules provide for a very lengthy and expensive procedure.
CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Taxation & FDI for LLP • Limited Liability Partnership will be treated as Partnership Firm for the purpose of Income tax. • The Income of LLP will be charged to tax in the hands of the LLP only and not in the hands of individual partners. • Remuneration to partners will be taxed as “Income from Business & Profession” and share of profit in the hands of the partner is exempt from tax u/s 10(2A). • Foreign Direct Investment in Limited Liability Partnership is allowed, with the specific approval of the government, in those sectors/activities where 100% FDI is otherwise allowed under the automatic route • No FDI-linked performance related conditions.
CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Evanston Insurance Company v. Dillard Depatment Stores Inc. 602 F. 2d 610 (5th Cir. 2010) • Dillard Department Stores, Inc. sued a law firm, Chargois & Ernster, L.L.P., in 2003 for federal and state trademark infringement, cyber piracy, and various business torts based on the law firm’s use of the Dillard’s name and logo on a website developed by the law firm to solicit clients with claims against Dillard’s. • The law firm was registered as a Texas LLP • However, in 2004, while the suit was ongoing, the partners entered into a separation agreement and did not renew the LLP registration • In Nov. 2004 – judgment was pronounced against “Chargois & Ernster, LLP” but since they were no longer in existence, Dillard’s was unable to collect the judgment
CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com • Dillard’s sought summary judgment that the partners were personally liable on the judgment against the law firm – this was granted by the courts. • The partners appealed stating that under the Texas Revised Partnership Act and principles of LLP – a partner is not liable for a debt or obligation of the partnership incurred while the partnership is an LLP • The partners argued that the debt was incurred when the firm was still an LLP • The court recognized the partners argument and further noted that a partner in an LLP cannot be held personally liable for ‘errors, omissions, negligence, incompetence or malfeasance’ committed by another partner while still an LLP.
CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com • However, the court noted that the debt accrued only in 2004 when the LLP was not in existence any longer citing the reason that before this date the debt was not truly in existence as various alternate scenarios could have played out, such as the judgment could have declared the LLP innocent, Dillard’s could have withdrawn the suit, etc., • As the Act and the underlying principle of an LLP only applied during existence of the LLP, the partners were held to be liable.
CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Edlinger v. United States, No. 3:10-cv-148, 2010 WL 1485951(N.D.N.Y. April 14th , 2010) • In this case – summary judgment in favor of the partner • No evidence of misconduct on the part of the partner in question • Partnership agreement did not limit the statutory protection provided by the LLP to its partners regarding limitation of liability • Thus the partner in question was not held liable
CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Websites Referred: • http://www.caclubindia.com/articles/an-overview-of-limited- liability-partnership-llp-in-india-15620.asp • http://www.charteredclub.com/what-is-a-limited-liability- partnership-llp/ • http://economictimes.indiatimes.com/small-biz/legal/why-it- makes-sense-to-go-for-llp/articleshow/49070161.cms • http://www.madaan.com/llpindia.html • Picture on Slide 7 from - http://taxguru.in/wp- content/uploads/2012/11/LLP-1.jpg
CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com THANK YOU

More Related Content

PPT
Transplantation of human organ act, 1994
byAltacit Global
 
PPT
Demonitisation
byAltacit Global
 
PPT
Succession law
byAltacit Global
 
PPTX
Euthanasia law in india
byAltacit Global
 
PPT
Mortgage
byAltacit Global
 
PPT
Rights of an unborn child
byAltacit Global
 
PPTX
Death penalty in india
byAltacit Global
 
PPT
Rights of transgenders in india
byAltacit Global
 
Transplantation of human organ act, 1994
byAltacit Global
 
Demonitisation
byAltacit Global
 
Succession law
byAltacit Global
 
Euthanasia law in india
byAltacit Global
 
Mortgage
byAltacit Global
 
Rights of an unborn child
byAltacit Global
 
Death penalty in india
byAltacit Global
 
Rights of transgenders in india
byAltacit Global
 

What's hot

PPT
Critical analysis of the surrogacy bill
byAltacit Global
 
PPTX
Defamation laws in India
byAltacit Global
 
PPT
Commercial courts
byAltacit Global
 
PPT
Information technology guidelines for intermediaries and digital media ethics...
byAltacit Global
 
PPTX
Legality of cryptocurrency in India
byAltacit Global
 
PPTX
Product liability laws in India
byAltacit Global
 
PPTX
Cyber hacking and cyber crimes in India
byAltacit Global
 
PPTX
An overview on laws against spamming in India
byAltacit Global
 
PPTX
Bio piracy and protection of traditional knowledge
byAltacit Global
 
PPTX
Tamilnadu regulation of rights and responsibilities of landlords and tenants ...
byAltacit Global
 
PPTX
Honour killing in India
byAltacit Global
 
PPTX
Class action lawsuit
byAltacit Global
 
PPTX
Grounds for divorce in India
byAltacit Global
 
PPTX
Public interest litigation
byAltacit Global
 
PPTX
Alimony laws in India
byAltacit Global
 
PPTX
Tips for time management and productivity at work place
byAltacit Global
 
PPT
Technology Development Board
byAltacit Global
 
PPTX
Hague apositille convention
byAltacit Global
 
PPTX
WIPO
byAltacit Global
 
PPT
Vishaka guidelines
byAltacit Global
 
Critical analysis of the surrogacy bill
byAltacit Global
 
Defamation laws in India
byAltacit Global
 
Commercial courts
byAltacit Global
 
Information technology guidelines for intermediaries and digital media ethics...
byAltacit Global
 
Legality of cryptocurrency in India
byAltacit Global
 
Product liability laws in India
byAltacit Global
 
Cyber hacking and cyber crimes in India
byAltacit Global
 
An overview on laws against spamming in India
byAltacit Global
 
Bio piracy and protection of traditional knowledge
byAltacit Global
 
Tamilnadu regulation of rights and responsibilities of landlords and tenants ...
byAltacit Global
 
Honour killing in India
byAltacit Global
 
Class action lawsuit
byAltacit Global
 
Grounds for divorce in India
byAltacit Global
 
Public interest litigation
byAltacit Global
 
Alimony laws in India
byAltacit Global
 
Tips for time management and productivity at work place
byAltacit Global
 
Technology Development Board
byAltacit Global
 
Hague apositille convention
byAltacit Global
 
WIPO
byAltacit Global
 
Vishaka guidelines
byAltacit Global
 

Similar to Limited liability partnerships

PPTX
Basics on Corporate Law by Altacit Global
byAltacit Global
 
PPTX
One person company
byAltacit Global
 
PPT
Steps to incorporation of a company in india
byAltacit Global
 
PPTX
Limited Liability Partnerships (LLP)- An Overview
byChhavi Sharma
 
PPTX
LLP
bySri Venkateswara College, University of Delhi
 
PPTX
Corporate Governance and Compliance in India
byAltacit Global
 
PPTX
Advantages and Disadvantages of LLP.pptx
byconnect96
 
PDF
Limited Liability Partnership
bypaperpublications3
 
PPT
Insolvency & Bankruptcy code 2016
byAltacit Global
 
PDF
Private Limited Company vs Limited Liability Partnership (LLP) vs One Person ...
byvakilsearch_tutorial
 
PPT
llp registration in india @ http://www.mcaindia.co.in/
byankitseo25
 
PDF
Guide for Limited Liability Partnership (LLP) Registration
byBinoy Chacko
 
DOCX
Registration of LLP.docx
byVineetSharma797142
 
PPSX
EGV - Legal structures - Lecture 1 & 2
byRohan Saraf
 
PPTX
Limited Liability Partnership (LLP) Act, 2008.pptx
byconnect96
 
PPTX
Limited Liability Partnership (LLP) Act, 2008
byconnect96
 
PPTX
Easy Steps for LLP Incorporation with DSC
byconnect96
 
PPTX
LLP Presentation
byChandan Kumar Gupta
 
PPTX
Company registrations
byRepublicGov
 
PPT
Woman director under the Indian companies act, 2013
byAltacit Global
 
Basics on Corporate Law by Altacit Global
byAltacit Global
 
One person company
byAltacit Global
 
Steps to incorporation of a company in india
byAltacit Global
 
Limited Liability Partnerships (LLP)- An Overview
byChhavi Sharma
 
LLP
bySri Venkateswara College, University of Delhi
 
Corporate Governance and Compliance in India
byAltacit Global
 
Advantages and Disadvantages of LLP.pptx
byconnect96
 
Limited Liability Partnership
bypaperpublications3
 
Insolvency & Bankruptcy code 2016
byAltacit Global
 
Private Limited Company vs Limited Liability Partnership (LLP) vs One Person ...
byvakilsearch_tutorial
 
llp registration in india @ http://www.mcaindia.co.in/
byankitseo25
 
Guide for Limited Liability Partnership (LLP) Registration
byBinoy Chacko
 
Registration of LLP.docx
byVineetSharma797142
 
EGV - Legal structures - Lecture 1 & 2
byRohan Saraf
 
Limited Liability Partnership (LLP) Act, 2008.pptx
byconnect96
 
Limited Liability Partnership (LLP) Act, 2008
byconnect96
 
Easy Steps for LLP Incorporation with DSC
byconnect96
 
LLP Presentation
byChandan Kumar Gupta
 
Company registrations
byRepublicGov
 
Woman director under the Indian companies act, 2013
byAltacit Global
 

More from Altacit Global

PPSX
The New Income Tax Bill, 2025 by Altacit Global
byAltacit Global
 
PPTX
Legal Issues in Esports and Gaming by Altacit Global
byAltacit Global
 
PPTX
Indian Ports Act 2025.pptx by Altacit Global
byAltacit Global
 
PPTX
Digital Personal Data Protection Rules, 2025
byAltacit Global
 
PPTX
Employee data Privacy and workplace monitoring
byAltacit Global
 
PPTX
Anti-doping Amendment Bill by Altacit Global
byAltacit Global
 
PPTX
Draft Copyright (Amendment) Rules, 2025.
byAltacit Global
 
PPSX
Reserve Bank of India (Digital Lending) Directions, 2025
byAltacit Global
 
PPTX
Trade Secrets Protection in the Digital Age
byAltacit Global
 
PPTX
Cryptocurrency and Digital Assets by Altacit Global
byAltacit Global
 
PPTX
Impact of Automation on Employment Laws by Altacit Global
byAltacit Global
 
PPTX
Legal Challenges in Cross-Border E-commerce
byAltacit Global
 
PPTX
Celebrity Rights and Personality Rights by Altacit Global
byAltacit Global
 
PPSX
OSS_Compliance_and_Legal risks by Altacit Global
byAltacit Global
 
PPTX
Impact of DPDP Act 2023 on Healthcare and Fintech Sectors
byAltacit Global
 
PPTX
Legal and Ethical challenges in AI by Altacit Global
byAltacit Global
 
PPTX
Ethical Ai and data privacy concerns by Altacit Global
byAltacit Global
 
PPTX
IP in the Entertainment Industry by Altacit Global
byAltacit Global
 
PPTX
Corporate Social Responsibility (CSR) Laws in India
byAltacit Global
 
PPTX
Regulation of Online Reviews and Testimonials
byAltacit Global
 
The New Income Tax Bill, 2025 by Altacit Global
byAltacit Global
 
Legal Issues in Esports and Gaming by Altacit Global
byAltacit Global
 
Indian Ports Act 2025.pptx by Altacit Global
byAltacit Global
 
Digital Personal Data Protection Rules, 2025
byAltacit Global
 
Employee data Privacy and workplace monitoring
byAltacit Global
 
Anti-doping Amendment Bill by Altacit Global
byAltacit Global
 
Draft Copyright (Amendment) Rules, 2025.
byAltacit Global
 
Reserve Bank of India (Digital Lending) Directions, 2025
byAltacit Global
 
Trade Secrets Protection in the Digital Age
byAltacit Global
 
Cryptocurrency and Digital Assets by Altacit Global
byAltacit Global
 
Impact of Automation on Employment Laws by Altacit Global
byAltacit Global
 
Legal Challenges in Cross-Border E-commerce
byAltacit Global
 
Celebrity Rights and Personality Rights by Altacit Global
byAltacit Global
 
OSS_Compliance_and_Legal risks by Altacit Global
byAltacit Global
 
Impact of DPDP Act 2023 on Healthcare and Fintech Sectors
byAltacit Global
 
Legal and Ethical challenges in AI by Altacit Global
byAltacit Global
 
Ethical Ai and data privacy concerns by Altacit Global
byAltacit Global
 
IP in the Entertainment Industry by Altacit Global
byAltacit Global
 
Corporate Social Responsibility (CSR) Laws in India
byAltacit Global
 
Regulation of Online Reviews and Testimonials
byAltacit Global
 

Recently uploaded

PPT
Competition act 2002 and competition commission of india
bydina818karan
 
PPTX
Audio Video Analysis in Digital Forensics
byTruth labs
 
PDF
AHRP LB - Energy Conservation Services Under MoEMR Reg 1 2026.pdf
byAHRP Law Firm
 
PDF
15.01.2025-DGP-RAJ.pdf DGP Rajasthan DGP
bysabranghindi
 
PPTX
Amnesty Scheme for Foreign Asset Disclosure
bySS Industries
 
PDF
Company Constitution vs Shareholders’ Agreement :What’s the Difference (and H...
byAdventum Legal Firm
 
PDF
Bass v. DPW: Foreclosure Ejectment Appeal
byJeremy Bass
 
PDF
VIETNAM - STRUCTURING REAL ESTATE INVESTMENT TRUSTS (REITS) IN VIETNAM: LEGAL...
byDr. Oliver Massmann
 
PDF
VIETNAM - NAVIGATING VIETNAM'S WIND POWER MARKET: LESSONS FROM THE PNE AG CAS...
byDr. Oliver Massmann
 
PDF
PUCL-2014-Judgement.pdf PUCL PUCL PUCL PUCL
bysabranghindi
 
PDF
Power point presentation on Legal Methods.pdf
bykrishpurohith
 
PDF
How can I create a new user for the Rulebooks platform?
byLegal Manager
 
PDF
Edited-ED-Right-to-health-and-emergency-medical-service-bill-2025.pdf
bysabranghindi
 
PDF
The Five Methods of Specific Relief Act,1877.pdf
by Judge Nazmul Hasan.
 
PDF
Danielle Oliveira New Jersey - A Lifelong Learner
byDanielle Oliveira New Jersey
 
PDF
ADGP-21.09.2023.pdf ADGP Rajasthan ADGP Rajasthan
bysabranghindi
 
PDF
"We’re Better Together," Message Guide for Building Public Support for Immigr...
byKatrina Sriranpong
 
PDF
For-Website-MEMORANDUM..pdf Voter List Crisis
bysabranghindi
 
PDF
Gujrat-HC-order-2.pdf Gujarat High Court
bysabranghindi
 
PDF
A brief introduction of the Rulebooks platform
byLegal Manager
 
Competition act 2002 and competition commission of india
bydina818karan
 
Audio Video Analysis in Digital Forensics
byTruth labs
 
AHRP LB - Energy Conservation Services Under MoEMR Reg 1 2026.pdf
byAHRP Law Firm
 
15.01.2025-DGP-RAJ.pdf DGP Rajasthan DGP
bysabranghindi
 
Amnesty Scheme for Foreign Asset Disclosure
bySS Industries
 
Company Constitution vs Shareholders’ Agreement :What’s the Difference (and H...
byAdventum Legal Firm
 
Bass v. DPW: Foreclosure Ejectment Appeal
byJeremy Bass
 
VIETNAM - STRUCTURING REAL ESTATE INVESTMENT TRUSTS (REITS) IN VIETNAM: LEGAL...
byDr. Oliver Massmann
 
VIETNAM - NAVIGATING VIETNAM'S WIND POWER MARKET: LESSONS FROM THE PNE AG CAS...
byDr. Oliver Massmann
 
PUCL-2014-Judgement.pdf PUCL PUCL PUCL PUCL
bysabranghindi
 
Power point presentation on Legal Methods.pdf
bykrishpurohith
 
How can I create a new user for the Rulebooks platform?
byLegal Manager
 
Edited-ED-Right-to-health-and-emergency-medical-service-bill-2025.pdf
bysabranghindi
 
The Five Methods of Specific Relief Act,1877.pdf
by Judge Nazmul Hasan.
 
Danielle Oliveira New Jersey - A Lifelong Learner
byDanielle Oliveira New Jersey
 
ADGP-21.09.2023.pdf ADGP Rajasthan ADGP Rajasthan
bysabranghindi
 
"We’re Better Together," Message Guide for Building Public Support for Immigr...
byKatrina Sriranpong
 
For-Website-MEMORANDUM..pdf Voter List Crisis
bysabranghindi
 
Gujrat-HC-order-2.pdf Gujarat High Court
bysabranghindi
 
A brief introduction of the Rulebooks platform
byLegal Manager
 

Limited liability partnerships

  • 1.
    CHENNAI III Floor, ‘CreativeEnclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com SUSHMA SOSHA PHILIP LIMITED LIABILITY PARTNERSHIPS An Overview
  • 2.
    CHENNAI III Floor, ‘CreativeEnclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Introduction • LLP - alternative corporate business entity – hybrid. • Benefits of limited liability of a company - allows its members the flexibility of organizing their internal management on the basis of a mutually-arrived agreement - as in a partnership firm. • Useful for small and medium enterprises, enterprises in the service sector – including professionals’
  • 3.
    CHENNAI III Floor, ‘CreativeEnclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Origin • USA – early 1990’s due to the collapse of real estate and energy prices • The failure led to bank and saving loan failures in turn • Since the amount recoverable from banks were small – efforts were made to recover these assets from lawyers and accountants • To prevent personal liability – LLP concept devised
  • 4.
    CHENNAI III Floor, ‘CreativeEnclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com LLPs In India • Limited Liability Partnership Act, 2008 • First LLP in India – incorporated in 2009 • “A corporate business vehicle that enables professional expertise and entrepreneurial initiative to combine and operate in flexible, innovative and efficient manner, providing benefits of limited liability while allowing its members the flexibility for organizing their internal structure as a partnership.”
  • 5.
    CHENNAI III Floor, ‘CreativeEnclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Salient Features/ Characteristics • LLP – Separate Legal Entity from the partners • Minimum of two partners requires • There must be at least two designated partners in every LLP of whom one shall be resident in India. • No requirement as to minimum capital contribution • Available to use by any enterprise • Perpetual succession • Mergers and acquisitions of LLPs may take place • Winding up - either voluntary or by the Tribunal to be established under The Companies Act, 1956. • The LLP Act 2008 enables the Central Government - apply the provisions of the Companies Act whenever appropriate - must issue notification to that effect provided
  • 6.
    CHENNAI III Floor, ‘CreativeEnclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com LLP Agreement • It is a written agreement between the partners. • Determines mutual rights and duties of the partners and their rights and duties in relation to the LLP • It is not necessary to enter into an LLP agreement as per LLP Act,2008 • In the absence of LLP agreement, the mutual rights of partners & rights in relation to LLP will be determined as per Schedule I of the LLP Act,2008 – power to expel not provided herein • Advisable to create suitable LLPs depending on the type of business
  • 7.
    CHENNAI III Floor, ‘CreativeEnclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Formation:
  • 8.
    CHENNAI III Floor, ‘CreativeEnclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Comparison: PARTICULARS PARTNERSHIP COMPANY LLP Registration Optional Mandatory Mandatory Creation Contract Law Law Cost of Formation Nominal High – Rs. 6000/- and above Moderate – Between Rs. 500/- and Rs. 5000/- Distinct Entity Not a separate entity Separate Legal Entity Separate Legal Entity Perpetual Succession No Concept There is Perpetual Succession There is Perpetual Succession Legal Proceedings Only registered partnership may sue a third party Can sue and be sued Can sue and be sued Foreign Nationals Cannot be Partners Can be members Can be Partners Liability of Partners Unlimited Limited to shares of the members Limited except in certain cases Transfer of Shares Not Transferable Transferable Governed by the LLP Agreement Whistle Blowers No provision for protection in the No provision for protection in the Protection is provided
  • 9.
    CHENNAI III Floor, ‘CreativeEnclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Conversion of Pvt. Ltd. Co./ Partnership into LLP • A firm, private company or an unlisted public company - option to convert into LLP. • Upon conversion - Registrar issues certificate to that effect. • After issuance of a certificate, all the property of the firm or the company, all assets, rights, obligations relating to the company shall be vested in the LLP - the firm or the company stands dissolved. • The Income tax law - modified - bringing the taxation aspects of conversion of Private Company or unlisted Public Company into an LLP. • There are no tax implications on conversion of a partnership firm into an LLP.
  • 10.
    CHENNAI III Floor, ‘CreativeEnclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com LLP Advantages • Liability of each partner limited to share as per the LLP Agreement • Low Cost of Formation • Easy to form • Partners – not held liable for the acts of each other • Less restrictions and compliance enforced on LLPs by the Government • Can sue and be sued in its name – partners are not liable to be sued for dues against the LLP
  • 11.
    CHENNAI III Floor, ‘CreativeEnclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com LLP Disadvantages • Cannot raise money from the public as a company does – cannot be formed for charitable purposes • Any act of the partner without the consent of other partners can bind the LLP. • Because of the hybrid form of the business, it is required to comply with various rules & regulations and legal formalities. • Difficult to wind up - Limited Liability Partnership (Winding Up and Dissolution) Rules provide for a very lengthy and expensive procedure.
  • 12.
    CHENNAI III Floor, ‘CreativeEnclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Taxation & FDI for LLP • Limited Liability Partnership will be treated as Partnership Firm for the purpose of Income tax. • The Income of LLP will be charged to tax in the hands of the LLP only and not in the hands of individual partners. • Remuneration to partners will be taxed as “Income from Business & Profession” and share of profit in the hands of the partner is exempt from tax u/s 10(2A). • Foreign Direct Investment in Limited Liability Partnership is allowed, with the specific approval of the government, in those sectors/activities where 100% FDI is otherwise allowed under the automatic route • No FDI-linked performance related conditions.
  • 13.
    CHENNAI III Floor, ‘CreativeEnclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Evanston Insurance Company v. Dillard Depatment Stores Inc. 602 F. 2d 610 (5th Cir. 2010) • Dillard Department Stores, Inc. sued a law firm, Chargois & Ernster, L.L.P., in 2003 for federal and state trademark infringement, cyber piracy, and various business torts based on the law firm’s use of the Dillard’s name and logo on a website developed by the law firm to solicit clients with claims against Dillard’s. • The law firm was registered as a Texas LLP • However, in 2004, while the suit was ongoing, the partners entered into a separation agreement and did not renew the LLP registration • In Nov. 2004 – judgment was pronounced against “Chargois & Ernster, LLP” but since they were no longer in existence, Dillard’s was unable to collect the judgment
  • 14.
    CHENNAI III Floor, ‘CreativeEnclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com • Dillard’s sought summary judgment that the partners were personally liable on the judgment against the law firm – this was granted by the courts. • The partners appealed stating that under the Texas Revised Partnership Act and principles of LLP – a partner is not liable for a debt or obligation of the partnership incurred while the partnership is an LLP • The partners argued that the debt was incurred when the firm was still an LLP • The court recognized the partners argument and further noted that a partner in an LLP cannot be held personally liable for ‘errors, omissions, negligence, incompetence or malfeasance’ committed by another partner while still an LLP.
  • 15.
    CHENNAI III Floor, ‘CreativeEnclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com • However, the court noted that the debt accrued only in 2004 when the LLP was not in existence any longer citing the reason that before this date the debt was not truly in existence as various alternate scenarios could have played out, such as the judgment could have declared the LLP innocent, Dillard’s could have withdrawn the suit, etc., • As the Act and the underlying principle of an LLP only applied during existence of the LLP, the partners were held to be liable.
  • 16.
    CHENNAI III Floor, ‘CreativeEnclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Edlinger v. United States, No. 3:10-cv-148, 2010 WL 1485951(N.D.N.Y. April 14th , 2010) • In this case – summary judgment in favor of the partner • No evidence of misconduct on the part of the partner in question • Partnership agreement did not limit the statutory protection provided by the LLP to its partners regarding limitation of liability • Thus the partner in question was not held liable
  • 17.
    CHENNAI III Floor, ‘CreativeEnclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Websites Referred: • http://www.caclubindia.com/articles/an-overview-of-limited- liability-partnership-llp-in-india-15620.asp • http://www.charteredclub.com/what-is-a-limited-liability- partnership-llp/ • http://economictimes.indiatimes.com/small-biz/legal/why-it- makes-sense-to-go-for-llp/articleshow/49070161.cms • http://www.madaan.com/llpindia.html • Picture on Slide 7 from - http://taxguru.in/wp- content/uploads/2012/11/LLP-1.jpg
  • 18.
    CHENNAI III Floor, ‘CreativeEnclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com THANK YOU