Distinguish between the following: 'Limited liability partnership' and 'body corporate'.

CS Executive · Company Law · PYQS · June 2015
Distinguish between the following: 'Limited liability partnership' and 'body corporate'.

Answer & Explanation:

Limited Liability Partnership (LLP) and Body Corporate LLP is an alternative form of corporate business, not being a company, that gives the benefits of limited liability of a company and the flexibility of a partnership. LLP is covered under the Limited Liability Partnership Act, 2008 while term "Body Corporate" as defined under section 2(11) of Companies Act, 2013 includes a Company incorporated outside India but does not include: a co-operative society registered under any law relating to co-operative societies; and any other body corporate (not being a company as defined in this Act), which the Central Government may, by notification, specify in this behalf; A body corporate may be a company incorporated by one person as One Person Company. LLP can't be incorporated by one person. A LLP may be a body corporate but the vice-versa may not be true. LLP will have lesser compliance requirements as compared to a company.

Topics: Types of Companies and Body Corporate

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