Chat of Shrihari and Sudama
Shrihari : ” Hello , Dear Friend We are meeting after long time “
Sudama : ” Yes Dear I was thinking of doing something different so was a bit busy “
Shrihari : ” But what are you exactly willing to do or trying to do ? “
Sudama :” Dear Shrihari, I wish to start my own business . One of my old friend is ready to assist me , but I am confused that how to start a Company. At the initial stage it seems to be difficult for me .”
Shrihari : ” Wow that great .It`s nice you have met me . One of my friend recently started Limited Liability Partnership that can be a good option for you .”
Sudama: ” I have heard about partnership but what do you mean by Limited Liability !!!”
Shrihari : ” Wait Wait , I will tell you ,LLP is a golden combination of features of company and Partnership
- Our normal Partnership got registered under Partnership Act , 1932 , LLP gets Register under LLP Act , 2008 with Ministry of Corporate Affairs .
- Like normal Partnership Deed , LLP Agreement is to be drafted and registered .
- Under normal partnership partners liability is unlimited that means when there is some dues to be paid and partnership is not in a position to pay those dues then the personal Property of the partners could be attached to repay those dues , where in LLP Liability of Partners is Limited to the contribution made by them , their personal property ,assets cannot be attached to repay the dues of LLP
- Like Company LLP is having Separate legal existence and perpetual succession , if the initial partners dies or leaves partnership then LLP will continues with new partners . This is not the case with usual partnership after initial partners that partnership need to be dissolved
- In company shareholders changes but Company remains the same , likewise partners of LLP Can change but LLP will be remain Alive .
Sudama : ” Shrihari my friend you are indeed a true friend of mine , I will surely visit your place tomorrow to get more information about LLP , You just made me feel comfortable , Thanks a Lot ” © CS Dhanashree Sathe
