A legally recognized entity defined under the Limited Liability Partnership Act 2000, which is capable of entering into contracts in its own right and is correspondingly liable for debts under those contracts. Any two or more persons associated for carrying on a lawful business with a view to profit may set up such a partnership under the Act. This type of business organization is intended to combine the flexibility of a traditional partnership with the corporate notion of limited liability. Under the provisions of the Act there is power to apply sections from both the Partnership Act 1890 and the Companies Act 2006, as appropriate, when dealing with the internal relations of the partners and limited liability, respectively. Persons intending to set up a limited liability partnership must register it with the Registrar of Companies (see registration of a company). There are also several disclosure requirements that are similar in nature to those required by companies.
Subjects: Law — Social Sciences.