Limited Liability Partnership is of recent origin, came into being with the passing of The Limited Liability Partnership Act, 2008 in January 2009. The major advantages offered by the said Act are the Perpetual Succession, Separate Legal Entity and Limited Liability, which was till now available to Company form of organization only.
Partnership form of organization is the most common among professionals such as Advocates, Chartered Accountants, Company Secretaries and Cost Accountants, who can now join in to reap benefits of partnership form of organization, with features of a Company.
Section 11 of The Limited Liability Partnership Act, 2008 provides for the incorporation of Limited Liability Partnership and states that for Limited Liability Partnership incorporation, two or more persons associated for carrying on a lawful business with a view to profit shall subscribe their names to an incorporation document.
The incorporation document is to be filed with the Registrar of the State in which the registered office of the limited liability partnership is situated and along with the incorporation document, one has to file a statement in the prescribed form, made by either an advocate, or a Company Secretary or a Chartered Accountant or a Cost Accountant, who is engaged in the formation of the limited liability partnership and by any one who subscribed his name to the incorporation document, that all the requirements of this Act and the rules made thereunder have been complied with, in respect of incorporation and matters precedent and incidental thereto. The above provision is somewhat similar to incorporation of a Company.