# Key Definitions under the LLP Act, 2008
Understanding the technical terms in Section 2 is the foundation for the rest of the Act. Each definition has a precise scope — what is included and what is excluded.
## 1. Body Corporate [Sec 2(1)(d)]
Includes:
- A company under the Companies Act
- LLP registered under the LLP Act
- LLP incorporated outside India
- Company incorporated outside India
Excludes:
- Corporation sole
- Co-operative society
- Any other body corporate notified by the Central Government
> Practical takeaway: An HUF is not a body corporate, so it cannot become a partner in an LLP. But a foreign LLP, a foreign company, or another Indian LLP can.
## 2. Business [Sec 2(1)(e)]
Includes every trade, profession, service, and occupation, except any activity that the Central Government may notify to exclude.
## 3. Financial Year [Sec 2(1)(l)]
The period from 1st April of a year to 31st March of the following year.
Special rule for new LLPs: If an LLP is incorporated after 30th September, its first FY may end on 31st March of the next following year.
## 4. Foreign LLP [Sec 2(1)(m)]
An LLP formed, incorporated, or registered outside India that establishes a place of business within India.
## 5. LLP Agreement [Sec 2(1)(o)]
A written agreement between:
- the partners of the LLP, OR
- the LLP and its partners
It determines the mutual rights and duties of the partners, and their rights and duties in relation to the LLP.
## 6. Small LLP [Sec 2(1)(ta)]
A Small LLP is one which:
1. Has contribution ≤ ₹25 lakhs (or such higher amount as prescribed, not exceeding ₹5 crores), AND
2. Has turnover (as per Statement of Accounts & Solvency) ≤ ₹40 lakhs (or such higher amount as prescribed, not exceeding ₹50 crores), OR
3. Meets such other terms and conditions as may be prescribed.
## Section 4 — Non-Applicability of Indian Partnership Act, 1932
Save as otherwise provided, the Indian Partnership Act, 1932 does not apply to LLPs. LLPs are governed by their own Act.