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LIMITED LIABLITY PARTNERSHIP

 Limited Liabilty Partnership A limited liability partnership(LLP) is a body corporate formed and incorporated under Limited Liability Partnership Act and is a legal entity separate from its partners having Perpetual succession and any change in the partners of a LLP shall not affect the existence, rights or liabilities of the LLP. LLP can enter into contracts and hold properties in its own name. Liability of Partners is limited up to the extent of agreed contribution in the LLP.

While forming a LLP, partners have to make an agreement under which rights, duties, contribution, liabilities and other obligations of partners are noted and the partners are governed through that agreement only.

LLP is quite beneficial to small and medium enterprise who wants to get into partnership with their partners to form a business or provide services. As because individual members have lower liabilities to any debts which may arise from running the business and also they get a corporate look for their business.In partnership where one partner is liable for act of other partner it become difficult to create trust in the business and in LLP everything is governed as per Act and Deed of partnership..

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