# LLP Act, 2008 — Introduction & Characteristics
## Enactment
- Presidential assent: 7 January 2009
- Enacted on: 9 January 2009
- Comprises 81 sections and 4 schedules.
### The 4 Schedules
| Schedule | Subject |
|---|---|
| First | Rights of partners and LLP in the absence of a formal agreement |
| Second | Converting a firm into LLP |
| Third | Converting a private company into LLP |
| Fourth | Converting an unlisted public company into LLP |
## Need & Benefits
- Introduced as an alternative corporate vehicle to meet evolving economic needs.
- Fills the void between traditional unlimited liability partnerships and the rigid structure of limited liability companies.
- Offers limited liability benefits while permitting flexible, partnership-like internal structuring based on mutual agreement.
- The LLP itself is liable to the full extent of its assets, but partners' liability is limited to their agreed capital contribution.
## Characteristics of an LLP
| # | Characteristic |
|---|---|
| 1 | Body Corporate |
| 2 | Perpetual Succession |
| 3 | Separate Legal Entity |
| 4 | Mutual Agency (only of LLP, not partners inter se) |
| 5 | LLP Agreement governs mutual rights & duties |
| 6 | Common Seal (optional) |
| 7 | Limited Liability of partners |
| 8 | Business for profit only |
| 9 | Compromise / Arrangement possible |
| 10 | Conversion into LLP permitted |
| 11 | E-Filing of documents |
| 12 | Foreign LLPs can establish place of business in India |
### Two characteristics worth examining closely
Mutual Agency — All partners are agents of the LLP alone. No partner can bind another partner by his act (unlike traditional partnerships under the Indian Partnership Act, 1932).
Limited Liability — Liability of partners is limited to their agreed contribution in the LLP. Such contribution may be of tangible or intangible nature, or both.