← All NotesCorporate Law· Limited Liability Partnership (LLP) Act, 2008

Corporate Law · 68 notes

Limited Liability Partnership (LLP) Act, 2008 notes.

Chapter-wise, structured notes for Judiciary (PCS-J / HJS), AIBE, CLAT and LLB preparation: sections, leading case law, illustrations and exam pointers. Every note is free to read, with previous and next topic links.

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  1. 01

    Genesis of LLP

    Inside this noteLLP Act 2008
    1. 01Unlimited liability – §25 IPA
    2. 02Mutual agency doctrine – §18 IPA
    3. 03No separate entity/perpetual succession
    4. 04LLP §3 body corporate & §27 liability cure
    6 min readRead →
  2. 02

    Naresh Chandra Committee 2003

    Inside this noteLLP law
    1. 01LLP restricted to service sector only
    2. 02Designated partners concept – §7 LLP Act
    3. 03IPA 1932 inapplicable – §4
    4. 04Hariram Taneja v Registrar of LLPs – 2015 Delhi HC
    5 min readRead →
  3. 03

    JJ Irani Committee 2005

    Inside this noteLLP
    1. 01Naresh Chandra I vs Irani – scope divergence
    2. 02LLP extended to small enterprises
    3. 03Shakti Bhog Foods v Kola Shipping (2009)
    4. 04Small LLP category – 2021 Amendment
    5 min readRead →
  4. 04

    LLP Bill 2006 Legislative Journey

    Inside this noteLLP Act 2008
    1. 01Presidential assent – Jan 7 2009, Act 6/2009
    2. 02LLP Act 2008 vs Act 6 of 2009 naming trap
    3. 03Structure – 81 Sections, 4 Schedules, 11 Ch
    4. 04Nikhil Merchants v UOI – Entry 43/44 List I
    5 min readRead →
  5. 05

    Comparative Origin UK US

    Inside this noteLLP
    1. 01Partial vs full shield – US debate
    2. 02UK LLP Act 2000 – structural parent
    3. 03India entity tax 30% vs UK transparent
    4. 04Designated partners – §7 unique feature
    6 min readRead →
  6. 06

    LLP vs IPA 1932 Section4

    Inside this note§ 4
    1. 01§4 exclusion – 'save as otherwise provided'
    2. 02Six conflicts: §25 IPA vs §27 LLP liability
    3. 03Jayamma Xavier – no analogy import from IPA
    4. 04Rathna Stores – LLP not a 'firm' under IPA
    6 min readRead →
  7. 07

    Naresh Chandra Committee II 2005

    Inside this noteLLP Act 2008
    1. 01Committee I vs II – distinguished
    2. 02Three-stage pre-legislative process
    3. 03Resident designated partner – §7(1)
    4. 04Azadi Bachao Andolan tax principle
    5 min readRead →
  8. 08

    LLP Amendment Act 2021

    Inside this noteLLP Amendment
    1. 01Small LLP – §2(1)(ta) thresholds
    2. 02Decriminalisation – §35(2)/§34(5) civil penalty
    3. 03Special Courts – §67A prospective (Siddhi Vinayak)
    4. 04Resident in India – §7: 182→120 days
    7 min readRead →
  9. 09

    LLP as Body Corporate

    Inside this noteLLP Act
    1. 01Body corporate & sep entity – §3(1)
    2. 02Perpetual succession – §3(2)
    3. 03Veil-lifting – fraud §30, non-disclosure §21
    4. 04Salomon v Salomon (1897) doctrine
    6 min readRead →
  10. 10

    Hybrid Nature of LLP

    Inside this noteLLP Act 2008
    1. 01No mutual agency – unique to LLP
    2. 02Designated partners – §7
    3. 03Schedule 1 defaults – no LLP agreement
    4. 04Satyam Computer Services v SEBI (2012)
    5 min readRead →
  11. 11

    Key Definitions Section2

    Inside this note§ 2
    1. 01Designated partner – §2(1)(j)/§7 min 2
    2. 02LLP agreement – §2(1)(o) written requirement
    3. 03Financial year proviso – §2(1)(l)
    4. 04Jayamma Xavier v Registrar of Firms 2021
    6 min readRead →
  12. 12

    Foreign LLP Section2m Section59

    Inside this note§ 2m
    1. 01Foreign LLP defn – §2(1)(m)
    2. 02Place of business trigger requirement
    3. 03Section 59 – rule-making power delegated
    4. 04Hutchison Telecom – agent presence test
    5 min readRead →
  13. 13

    LLP vs Company CA2013

    Inside this noteLLP Act 2008
    1. 01No AGM/Board meetings – LLP
    2. 02Designated partners vs Directors
    3. 03ESOPs – §62 CA2013, none in LLP
    4. 04Vodafone – separate legal entity
    4 min readRead →
  14. 14

    LLP vs Partnership Firm IPA1932

    Inside this noteLLP Act 2008
    1. 01Mutual agency – §18 IPA vs §4 LLP exclusion
    2. 02Unlimited liability §25 IPA vs limited §27 LLP
    3. 03Fraud exception – §30 LLP unlimited liability
    4. 04Compulsory dissolution – §44 IPA vs §64 NCLT
    5 min readRead →
  15. 15

    LLP vs LLC International

    Inside this noteLLP Act 2008
    1. 01ADIT v Essar Teleholdings (2012) ITAT
    2. 02LLC pass-through vs LLP entity tax 30%
    3. 03Why India chose LLP over LLC
    4. 04Member-managed vs manager-managed LLC
    4 min readRead →
  16. 16

    Salient Features of LLP

    Inside this noteLLP Act 2008
    1. 01No mutual agency – §4 excludes IPA §18
    2. 02Designated partners rule – §7
    3. 03Min 2 partners – §6 (6-month grace)
    4. 04Hariram Taneja v ROC – non-derogable duties
    5 min readRead →
  17. 17

    Advantages Disadvantages LLP

    Inside this noteLLP Act
    1. 01Limited liability – §27 LLP Act
    2. 02No ESOP mechanism disadvantage
    3. 03One-way conversion – ABC Associates LLP
    4. 04Entity taxation 30% vs UK pass-through
    6 min readRead →
  18. 18

    Small LLP 2021 Amendment

    Inside this noteLLP Act
    1. 01Small LLP def – §2(1)(ta)
    2. 02Dual threshold: ₹25L contribution+₹40L turnover
    3. 03Small LLP vs Small Company §2(85) CA13
    4. 04Annual reassessment, not permanent status
    5 min readRead →
  19. 19

    Who Can Be Partner Section5

    Inside this note§ 5
    1. 01Three disqualifications – §5(a)-(c)
    2. 02Minor cannot be partner – Contract Act §11
    3. 03Contrast with IPA 1932 §30 minor benefits
    4. 04Body corporate partner – designated partner rule §7
    5 min readRead →
  20. 20

    Minimum Two Partners Section6

    Inside this note§ 6
    1. 016-month grace period – §6(2)
    2. 02Cognisant/actual knowledge – Virendra Kumar Sharma
    3. 03No maximum partners in LLP
    4. 04Parallel: §3A Companies Act 2013
    5 min readRead →
  21. 21

    Designated Partners Section7

    Inside this note§ 7
    1. 01Residency – 120 days FY (post-2021)
    2. 02DPIN mandatory – §7(4)
    3. 03Section 9 – deeming all partners designated
    4. 0430-day vacancy filling rule – §7(3) Rules
    6 min readRead →
  22. 22

    Disqualifications Designated Partners Section8

    Inside this note§ 8
    1. 01Moral turpitude conviction – §8(d)
    2. 025-yr clock from sentence expiry
    3. 03LLP Act conviction – §8(e), permanent bar
    4. 04Rajendra Singh – moral turpitude test
    4 min readRead →
  23. 23

    Vacancy Designated Partnership Section9

    Inside this note§ 9
    1. 01§9 – all-partners-deemed rule
    2. 0230-day vacancy rule – Rule 7(3)
    3. 03Hemant Singh v Registrar of LLPs NCLT
    4. 04Form 9 consent – §7(3)
    5 min readRead →
  24. 24

    Incorporation Procedure StepByStep

    Inside this noteLLP Act §12
    1. 01FiLLiP – master incorporation form
    2. 02Certificate of Incorporation – Form 16 §12
    3. 03Conclusive evidence – Registrar of Companies v Ankit Rathi
    4. 04LLP Agreement filing – Form 3 within 30 days
    5 min readRead →
  25. 25

    Name of LLP Sections15to18

    Inside this note§§ 15to–18
    1. 01Mandatory suffix rule – §15
    2. 02Prohibited names – §16(1)(a)&(b)
    3. 03CG name change order – §17
    4. 04Penalty for unregistered LLP use – §22
    5 min readRead →
  26. 26

    Registered Office Section13

    Inside this note§ 13
    1. 01Registered office – §13(1)
    2. 02Form 15 – change within 30 days
    3. 03Name (Form5) vs office (Form15) change
    4. 04Service valid at registered office – §13(3)
    4 min readRead →
  27. 27

    Effect of Registration Section12

    Inside this note§ 12
    1. 01Certificate of Incorporation – Form 16, §12
    2. 02Date of incorporation – Certificate date, not filing
    3. 03Pre-incorporation contracts – partners personally bound
    4. 04Peel v London & NW Railway – conclusive evidence
    5 min readRead →
  28. 28

    LLP Rules 2009

    Inside this noteLLP Rules 2009
    1. 01Rule 7(3) – 30-day vacancy filling
    2. 02Form 8 SoAS deadline – 30 Oct
    3. 03Form 11 Annual Return – 30 May
    4. 04Bhagwan Dass – intra vires test
    6 min readRead →
  29. 29

    LLP Agreement Nature Clauses

    Inside this noteLLP Act
    1. 01S.23 – two-tier: Agreement then Schedule 1
    2. 02Non-derogable clauses – §7,30,34-35,64
    3. 03Schedule 1 Para 1 – equal profit/loss default
    4. 04Jayamma Xavier v Registrar of Firms (2021)
    5 min readRead →
  30. 30

    Mutual Rights Duties Section23

    Inside this note§ 23
    1. 01Self-dealing bar – §23(4)
    2. 02Schedule 1 gap-filler – §23(1)
    3. 03Trimble v Goldberg – opportunity diversion
    4. 04Laxman Das – equal profit default
    4 min readRead →
  31. 31

    Extent of Liability Section27

    Inside this note§ 27
    1. 01Four sub-sections – §27(1)-(4)
    2. 02Fraud exception – §30 unlimited liability
    3. 03Hamlyn v John Houston – LLP liability
    4. 04Green v Howell – shield for innocent
    4 min readRead →
  32. 32

    Unlimited Liability Fraud Section30

    Inside this note§ 30
    1. 01§30(2) – 2yr jail, ₹50k–5L fine
    2. 02Six elements – knowing party & fraud intent
    3. 03§30 vs §27(4) distinction
    4. 04Re William C. Leitch Brothers – insolvent trading
    4 min readRead →
  33. 33

    Cessation of Partnership Section24

    Inside this note§ 24
    1. 0130 days notice – §24(1)
    2. 02Automatic cessation – §24(2)
    3. 03Third-party liability – §24(4) & Form 4
    4. 04Mehra v Modi – profit rights vs value claim
    4 min readRead →
  34. 34

    Whistleblowing Protection Section31

    Inside this note§ 31
    1. 01No IPA 1932 equivalent – unique feature
    2. 02§31(1) – report to any govt authority
    3. 03§31(2) – civil/criminal immunity
    4. 04Good faith requirement for immunity
    4 min readRead →
  35. 35

    Transfer Economic Rights Section42

    Inside this note§ 42
    1. 01§42(1) – transfer of economic rights only
    2. 02§42(2) – no management rights to transferee
    3. 03Bombay Dyeing v BEAG (2006) 3 SCC 434
    4. 04LLP economic right vs company share distinction
    4 min readRead →
  36. 36

    Contribution by Partners

    Inside this noteLLP Act
    1. 01Definition of contribution – §2(1)(e)
    2. 02Binding obligation to contribute – §32(1)
    3. 03Schedule 1 default rules & override
    4. 04Contribution vs loan – Bacha F. Guzdar
    4 min readRead →
  37. 37

    LLP as Agent No Mutual Agency Section26

    Inside this note§ 26
    1. 01No mutual agency – §26 vs §18 IPA
    2. 02Proviso – both conditions test
    3. 03Mercantile Credit Co v Garrod
    4. 04Hamlyn v John Houston & Co
    6 min readRead →
  38. 38

    Obligation Maintain Accounts Section34

    Inside this note§ 34
    1. 01Double-entry system & 8-year retention – §34(1)
    2. 02Form 8 SoAS deadline – 30 Oct (Rule 24)
    3. 03Audit threshold – turnover >40L or contrib >25L
    4. 04Jayamma Xavier – personal DP signing duty
    6 min readRead →
  39. 39

    Statement Account Solvency Form8

    Inside this noteLLP Act §34
    1. 0130 Oct deadline – Rule 24 vs §34(2)
    2. 02Audit threshold – turnover/contribution limits
    3. 03Post-2021 penalty – ₹100/day, caps
    4. 04Form 8 vs Form 11 distinction
    6 min readRead →
  40. 40

    Audit Requirement Thresholds NFRA

    Inside this noteLLP Act
    1. 01Audit threshold – Rule 24(2), LLP Rules
    2. 02OR test – turnover ₹40L or contribution ₹25L
    3. 03§34A – NFRA accounting/auditing standards
    4. 04ICAI v Multiplex Constructions LLP (2019)
    5 min readRead →
  41. 41

    Annual Return Form11 Section35

    Inside this note§ 35
    1. 01Form 11 – 60 days from FY end (§35)
    2. 02Dormant LLP must still file – Mehta & Partners
    3. 03Deadline runs from 31 Mar – Singh & Associates
    4. 04Form 11 vs Form 8 distinction
    6 min readRead →
  42. 42

    Taxation LLP 30Percent NoDDT

    Inside this noteLLP Taxation
    1. 0130% flat entity tax rate – LLP
    2. 02Partners' exemption – §10(2A) IT Act
    3. 03No DDT on LLP distributions
    4. 04AMT – §115JC, 18.5% rate
    5 min readRead →
  43. 43

    Penalties NonFiling Section34 35

    Inside this note§§ 34–35
    1. 01Rs.100/day cap – §34(5)/35(2)
    2. 02Pre vs post-2021 criminal to civil shift
    3. 03Appeal – Regional Director within 60 days
    4. 04ABC Consulting LLP v ROC NCLT 2022
    5 min readRead →
  44. 44

    Decriminalisation 2021 Amendment

    Inside this noteLLP Act
    1. 01Form 8/11 civil penalty – §34(5)/35(2)
    2. 02Fraud, false statement remain criminal – §30,36
    3. 03Vivek Kumar Jain v UOI – prospective from 1 Apr 2022
    4. 04Compoundable vs non-compoundable offences
    4 min readRead →
  45. 45

    Financial Year Special Rule Section2l

    Inside this note§ 2l
    1. 01Proviso – FY extends to next 31 March
    2. 02Max first FY ~18 months – Oct 1 case
    3. 03Sept 30 trap – must be AFTER not on
    4. 04Arvind Electronics LLP ROC Maharashtra 2020
    5 min readRead →
  46. 46

    Inspector Power Accounts Section46

    Inside this note§ 46
    1. 01Examination on oath – §46(1)
    2. 021/5th partners' petition – §43
    3. 03§46 vs §47 – demand vs JM seizure
    4. 04Art 20(3) privilege – Rajesh Shah v SFIO
    7 min readRead →
  47. 47

    Investigation Section43

    Inside this note§ 43
    1. 01Partner petition threshold – 1/5th votes §43(1)(a)
    2. 02CG suo motu ground – §43(1)(b)
    3. 03§44 extends probe to related entities
    4. 04Investigation vs Inspection – §43 vs §68
    3 min readRead →
  48. 48

    Inspector Powers Section46

    Inside this note§ 46
    1. 015 categories examinable – §46(1)
    2. 02Certified copies of documents – §46(3)
    3. 03M.P. Sharma v Satish Chandra 1954 SCR 1077
    4. 04§46 vs §47 – demand vs seizure
    3 min readRead →
  49. 49

    Inspector Report Section49 52

    Inside this note§§ 49–52
    1. 01Interim vs Final report – §49
    2. 02Five actions on report – §52
    3. 03Winding-up petition – §52(a)
    4. 04Report as public document & evidence
    2 min readRead →
  50. 50

    Seizure Documents Section47 48

    Inside this note§§ 47–48
    1. 01Seizure of documents – §47 LLP Act
    2. 02JMFC/Metropolitan Magistrate order required
    3. 03180-day retention rule – §48
    4. 04Kathi Kalu Oghad – seizure vs Art 20(3)
    3 min readRead →
  51. 51

    Recovery After Investigation Section52

    Inside this note§ 52
    1. 015 discretionary actions – §52
    2. 02Winding-up petition – §52(a)/§64
    3. 03Criminal complaint – §52(b) Special Court
    4. 04Report admissible in §52 proceedings
    2 min readRead →
  52. 52

    Fraudulent Conduct Section30

    Inside this note§ 30
    1. 01Unlimited civil liability – §30(1)
    2. 02Criminal liability – §30(2) 2yrs+fine
    3. 03§30 vs §27(4) distinction
    4. 04Official Liquidator v. Rajiv Mohan Sharma NCLT
    3 min readRead →
  53. 53

    Registrar Powers Section68to75

    Inside this note§§ 68to–75
    1. 01Strike-off defunct LLP – §75
    2. 02Non-filing 2 years – trigger
    3. 0330-day show-cause notice – natural justice
    4. 04Restoration within 5 yrs – §75(4)
    3 min readRead →
  54. 54

    Special Courts Section67A

    Inside this note§ 67A
    1. 01Section 67A – Special Courts (2021 Amdt)
    2. 02Summary trial – offences up to 2 yrs
    3. 03Criminal appeal – High Court NOT NCLAT
    4. 04Rajiv Jain – prospective jurisdiction test
    3 min readRead →
  55. 55

    Conversion Firm to LLP Schedule2

    Inside this noteLLP Act §55
    1. 01Eligibility conditions – Sch 2 Para 1
    2. 02Form 17 – Registrar statement
    3. 03Assets vest automatically – no deed
    4. 04Geeta Devi v ITO – §47(xiiib) strict
    3 min readRead →
  56. 56

    Conversion PrivateCo to LLP Schedule3

    Inside this noteLLP Act
    1. 01Five conditions – Schedule 3 Para 2
    2. 02No subsisting charge – most critical
    3. 035-year lock-in – §47(xiiib) IT Act
    4. 04Consult India LLP ROC Mumbai (2017)
    3 min readRead →
  57. 57

    Conversion UnlistedPublicCo Schedule4

    Inside this noteLLP Act §57
    1. 01Section 57 + Schedule 4 route
    2. 02No outstanding public deposits condition
    3. 03No outstanding debentures condition
    4. 04Listed companies cannot convert
    2 min readRead →
  58. 58

    Conversion Hurdles Listed NBFC

    Inside this noteLLP Act
    1. 01Listed company bar – §57 unlisted only
    2. 02NBFC/bank/insurance – company form required
    3. 03One-way conversion – no LLP to company
    4. 04ABC & Associates LLP – NCLT Mumbai 2019
    3 min readRead →
  59. 59

    Effects of Conversion

    Inside this noteLLP §55-59
    1. 01Universal succession vs slump sale distinction
    2. 02Schedules 2, 3, 4 – vesting clause
    3. 03No novation needed for contracts/leases/loans
    4. 04Surya Lighting Industries v TNEB (2016)
    3 min readRead →
  60. 60

    LLP as Partner in LLP

    Inside this noteLLP Act
    1. 01Body corporate as partner – §5 LLP Act
    2. 02§2(1)(d) – foreign LLP included post-2021
    3. 03Designated partner nominee – §7(1) proviso
    4. 04Foreign LLP partner triggers FDI/FEMA
    3 min readRead →
  61. 61

    Conversion Procedure Forms Timeline

    Inside this noteLLP Rules 32-37
    1. 01Form 17 – firm to LLP (Rule 32)
    2. 02Form 18 – company to LLP (Rules 33-34)
    3. 03Newspaper notice – vernacular+English, 30 days
    4. 04LLP Agreement – Form 3, 30 days
    3 min readRead →
  62. 62

    Voluntary Winding Up Section63

    Inside this note§ 63
    1. 013/4th majority – head count not value
    2. 02Solvency declaration – within 5 weeks
    3. 03False declaration – up to 3 yrs jail
    4. 04Re Sarkar Brothers LLP NCLT Kolkata 2020
    3 min readRead →
  63. 63

    Compulsory Winding Up Section64

    Inside this note§ 64
    1. 01Six grounds – §64
    2. 02Just and equitable – Ebrahimi v Westbourne
    3. 035-yr non-filing – Suresh Chandra case
    4. 0421-day statutory demand – inability to pay
    3 min readRead →
  64. 64

    IBC LLP Voluntary Liquidation Section59

    Inside this note§ 59 IBC
    1. 01Section 59 IBC – voluntary liquidation
    2. 02LLP as corporate person – §3(7) IBC
    3. 03270-day IBBI VLP Regulations timeline
    4. 04IBBI v. Braj Nath Kher (2020)
    3 min readRead →
  65. 65

    Liquidator Appointment Powers

    Inside this noteLLP §64-65
    1. 01Provisional liquidator – appointment & role
    2. 02Six-tier priority order for payment
    3. 03Official Liquidator v XYZ LLP Partners NCLT (2019)
    4. 04IBC liquidator – IBBI-registered IP mandatory
    3 min readRead →
  66. 66

    Committee of Inspection Rule23

    Inside this noteLLP W&D Rules
    1. 01Rule 23 – LLP (W&D) Rules 2012
    2. 02Max 12 members – creditors & partners
    3. 033 consecutive absences – NCLT removal
    4. 04Liquidator needs Committee sanction
    2 min readRead →
  67. 67

    Dissolution LLP Section65

    Inside this note§ 65
    1. 01Dissolution process – §65 liquidator to NCLT
    2. 02Pari passu distribution to creditors
    3. 03Partners rank last after creditors
    4. 045-year restoration – §75(4) retrospective
    3 min readRead →
  68. 68

    NCLT Jurisdiction NCLAT Section72

    Inside this note§ 72
    1. 01§72 – 60+60 day appeal period
    2. 02Consent order exclusion – 2021 Amdt
    3. 03Embassy Property Developments v Karnataka
    4. 04Criminal conviction appeal – High Court only
    3 min readRead →