Core concepts
- 01LLP: hybrid — body corporate with separate legal entity, perpetual succession.
- 02Minimum 2 partners; at least 2 designated partners (one resident in India).
- 03Liability of partners limited to agreed contribution.
- 04Mutual rights and duties governed by LLP Agreement (filed in Form 3).
- 05LLP audit mandatory if turnover > ₹40 lakhs or contribution > ₹25 lakhs.
Flowchart summary
LLP Structure | +-- Body corporate (sep. legal entity) +-- Partners (≥ 2) +-- Designated Partners (≥ 2, 1 resident) +-- LLP Agreement (Form 3) +-- Limited liability for partners
Exam-critical pointers
- ⭐Differences vs Partnership: separate entity, limited liability, perpetual succession, no max partner limit.
- ⭐Default: LLP Agreement absent → First Schedule applies (equal profits, no interest on capital, etc.).
- ⭐Conversion to LLP from firm/private co/unlisted public co allowed under Schedules II-IV.
- ⭐Designated Partner Identification Number (DPIN) mandatory for designated partners.
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