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LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership.

The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name.

The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP.

Further, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct.

Mutual rights and duties of the partners within a LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity.

you need to consult a chartered accountant regarding tax treatment of income from forex , stock and commodity .

A basic difference between an LLP and a joint stock company lies in that the internal governance structure of a company is regulated by statute (i.e. Companies Act, 1956) whereas for an LLP it would be by a contractual agreement between partners.

The management-ownership divide inherent in a company is not there in a limited liability partnership.

LLP will have more flexibility as compared to a company.

LLP will have lesser compliance requirements as compared to a company.

Mr. Sethi is rightly inform.

1. A Limited Liability Partnership (LLP) is a concept which mixes the benefits of a limited liability of a company, and at the same time gives to its members the flexibility of organizing their internal structure as a partnership on the basis of a mutually arrived agreement. LLP is required in law have at least two designated partners who are individuals and at least one of them shall be resident in India. In case one or more of the partners of a LLP are bodies corporate at least two individuals who are partners of such LLP or nominees of such bodies corporate shall act as designated partners.

2. LLP, being a separate legal entity, is liable under law to the full extent of its assets whereas the liability of the partners of LLP shall be limited to their agreed contribution in the LLP on the basis of the agreement entered into.

1. Forex trading is illegal and a non-bailable offence in India.

2. Transactions in derivatives are not considered as speculative transaction, as per Section 43 (5) of Income Tax Act, 1961. Therefore, income from F&O may be shown as non-speculative business income and it will be taxed according to the slab rate applicable to the particular Assessment Year. In case the turnover exceeds Rs.1 crore tax audit compliance is required to be done.