Limited legal partnership law
Rajendra Kashinath Patil
(Querist) 31 October 2014
This query is : Resolved
i am having 2500sq ft commercial space at Pune.a private hospital is interested to start dispensory . so they offer me partnership on LLP basis.let me know advantage and disadvantage of LLP
V R SHROFF
(Expert) 31 October 2014
Purely Commercial Query.
May consult Local Advocate.
Anirudh
(Expert) 31 October 2014
Dear Mr. Rajendra,
I am neither a local lawyer (meaning I am not located at the place where you are located) nor an International Lawyer, but a Lawyer in India knowing the LLP law. With this little background, I am trying to provide broad answer to your query.
In the Traditional Partnerships / Proprietorship, the liability was Unlimited.
In the LLP the liability of each partner is limited to his share as written in the Agreement filed at the time of creation of LLP.
In the Traditional Partnerships, the partnership itself did not have any independent legal entity. The partners and the partnership are not separate. However, the LLP has Separate Legal Entity i.e. the LLP and the partners are distinct from each other.
In the Traditional Partnership each partner is an agent of the other and therefore was liable for the acts of other partners also. However, in the LLP, the Partners are not liable for the acts of each other and can be held liable only for their own acts.
In the traditional partnerships, the partners are liable to be sued. However, since LLP is a Juristic Legal Person, the LLP can sue in its name and be sued by others. The partners in the LLP are not liable to be sued for dues against the LLP.
The Limited Liability Partnership gives the benefits of both Companies as well as Partnerships.
The biggest disadvantage of forming a LLP is that it cannot come out with its Initial Public Offer (IPO) and has to raise Money from the Public.
Guest
(Expert) 31 October 2014
Purely Commercial Query.Better Consult a Local Good Knowledgeable Advocate.
ajay sethi
(Expert) 31 October 2014
agree with MR Anirudh
