Can LLP be a subsidiary of a company
Can LLP be a subsidiary of a company:
In the majority of legal jurisdictions, it is not permissible for a Limited Liability Partnership to function as a subsidiary of a company. An LLP is typically a distinct legal entity and a separate business structure from a company. It design to combine the limited liability protection of a company with the flexibility and tax advantages of a partnership.
A subsidiary is a company that is under the control of another company, known as the parent company. Generally, a subsidiary is structured as a separate legal entity. It is with the parent company owning a majority of its shares or having the ability to control its operations.
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While the laws and regulations governing business structures can vary between countries, LLPs are typically not allowed to have subsidiaries. LLPs usually require to consist of individual partners, who are personally responsible for their own actions and liabilities within the partnership. This is different from a company, where the liability of the shareholders generally limit with the amount they have invested in the company.
It’s important to consult with a legal professional or business advisor in your jurisdiction to understand the specific regulations and requirements related to LLPs and subsidiaries, as they can vary depending on the country or region.
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To visit: https://www.mca.gov.in
