Limited Liability Partnership (LLP)

Setting up the LLP

To set up LLP to run the business you may take two or more members. The member can be a individual person or a company which is known as “Corporate Member”.
You need to choose a name with at least two designated members with valid and registered address that is available in public. Next, its mandatory to make an LLP agreement which will say how the LLP will run and finally register the LLP with companies house.

Why LLP Agreement is needed?

This is because some consequences occur which may result in negative impacts. If you do not enter an LLP agreement, then you will be getting regulated by the Default Provisions of the Limited Liability Partnerships Regulations 2001.

FAQS ABOUT LIMITED LIABILITY PARTNERSHIP

Define Limited Liability?

It means when a partner of an organization doesn’t take on any of its debts and only loses whatever he/she invests. That means, in other words, it means that its a state in which the members or the shareholders are responsible for the debts of the company only to the extent in respect to the nominal value of their shares.

How are the LLPs Governed?

The LLP is a separate legal entity and, while the LLP itself will be liable for the full extent of its assets, the liability of the members will be limited.

How are LLPs governed?

It is governed by the Limited Liability Partnerships Act 2000 in England,Wales and Scotland and the Limited Liability Partnerships Act 2002 in Northern Ireland.

What are the Legal requirements of LLP?

Must have at least two member of shareholders who will be responsible for the affairs of the LLP.

It has common law which takes one day to establish the company.

Who is responsible for the company?

Members of the LLPs are responsible on whatever the works is been carried out.