With reference to the Limited Liability Partnership Act 2008 consider the following statements about...........

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With reference to the Limited Liability Partnership Act, 2008, consider the following statements about Limited Liability Partnership (LLP).

LLP can enter into contracts and hold properties.
LLP can continue its existence irrespective of changes in partners.

Which of the above is/are correct?

1 only

2 only

Both 1 and 2

None

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Explanation:

Statement 1 and 2: LLP is a hybrid of companies & partnerships providing benefits of limited liability while allowing its members the flexibility for organizing their internal structure as a partnership. The Act was enacted by the Parliament of India to introduce and legally sanction the concept of LLP in India. Unlike the general partnerships in India, LLP is a body corporate and legal entity separate from its partners, have perpetual succession and any change in the partners of a LLP shall not affect the existence, rights or liabilities of the LLP.

Statement 2: LLP registered in India will be a resident even if only a part of control and management is in India. Profits distributed by LLP exempt in the hands of the partners.