BUSINESS REGULATORY FRAMEWORK SUBHASH KUMAR ASSISTANT PROFESSOR GUEST
BUSINESS REGULATORY FRAMEWORK SUBHASH KUMAR ASSISTANT PROFESSOR (GUEST) DEPT. OF COMMERCE CMB COLLEGE DEORH GHOGHARDIHA (MADHUBANI)
B. COM 2 ND YR, HONOURS PAPER-III, UNIT-V
THE LIMITED LIABILITY PARTNERSHIP ACT, 2008 The Limited Liability Partnership Act, 2008 was enacted by the Parliament of India to introduce and legally sanction the concept of LLP in India. It extends to the whole of India. Unlike the general partnerships in India, LLP is a body corporate and legal entity separate from its partners, have Perpetual succession and any change in the partners of a LLP shall not affect the existence, rights or liabilities of the LLP. Non-applicability of the Indian Partnership Act, 1932. —Save as otherwise provided, the provisions of the Indian Partnership Act, 1932 (9 of 1932) shall not apply to a limited liability partnership.
STRUCTURE OF AN LLP 1. Body Corporate 3. Perpetual Succession 2. Separate legal entity
STRUCTURE OF AN LLP Section 3 - Limited Liability Partnership to be body corporate: 1. A limited liability partnership is a body corporate formed and incorporated under this Act and is a legal entity separate from that of its partners. 2. A limited liability partnership shall have perpetual succession. 3. Any change in the partners of a limited liability partnership shall not affect the existence, rights or liabilities of the limited liability partnership.
IMPORTANT SECTIONS Section 4 - Non-applicability of the Indian Partnership Act, 1932 Section 5 - Partners Any individual or body corporate may be a partner in a limited liability partnership: Provided that an individual shall not be capable of becoming a partner of a limited liability partnership, if-- a. he has been found to be of unsound mind by a Court of competent jurisdiction and the finding is in force; b. he is an undischarged insolvent; or c. he has applied to be adjudicated as an insolvent and his application is pending.
IMPORTANT SECTIONS Section 6 - Minimum number of Partners : Every limited liability partnership shall have at least two partners. Section 7 – Designated Partners : Every limited liability partnership shall have at least two designated partners who are individuals and at least one of them shall be a resident in India. Provided that in case of a limited liability partnership in which all the partners are bodies corporate or in which one or more partners are individuals and bodies corporate, at least two individuals who are partners of such limited liability partnership or nominees of such bodies corporate shall act as designated partners.
1. APPLICATION FOR DSC • Every Individual proposed to be appointed as the partner and designated Partner of the LLP shall obtain a Digital Signature Certificate.
2. APPLICATION FOR DIN • The Designated partners of the proposed LLP are required to apply for DIN in Form DIR-3 by attaching prescribed documents. • The Designated Partner Identification No. /DIN is valid for life time of applicant. • Every Designated Partner shall along with his consent to be a designated partner, intimate his DPIN to LLP in Form 9. • If the proposed designated partner already having DIN/DPIN, he need not apply for another DIN/DPIN. • If the proposed designated partner already having DIN, he need not require to apply for another DPIN, the DIN will be treated as DPIN.
3. NAME RESERVATION • Application for reservation of name: The application for the reservation of the name of the LLP is to be filed in Form 1. Such name shall be available for reservation for a period of 3 months from the date of intimation by the Registrar. • Every limited liability partnership shall have either the words “limited liability partnership” or the acronym “LLP” as the last words of its name. • Criteria for name approval: The name of LLP should not be one prohibited under Emblems and Names (Prevention of Improper Use) Act, 1950. The proposed name is not generally reserved in case it includes the words as provided in Section 15(2) of the Act read with Rule 18(2).
LECTURE-01 CONTND… THANK YOU
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