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CS Executive · Setting Up of Business, Industrial and Labour Laws · Business Collaborations

Meera and Kabir plan a joint venture where they want limited liability, separate legal entity status and flexible internal management by agreement, without the need for a board of directors structure. Which vehicle best suits this?

A Limited Liability Partnership suits them. It is a separate legal entity, partners have limited liability, and internal governance can be fixed by agreement without a board. A general partnership has unlimited liability, and proprietorship or HUF does not fit two unrelated venturers.

  1. ALimited Liability PartnershipCorrect
  2. BGeneral partnership under the Partnership Act
  3. CSole proprietorship
  4. DHindu Undivided Family business

Explanation

An LLP is a separate legal entity with limited liability of partners and internal management governed by agreement. A general partnership gives unlimited liability, and a proprietorship or HUF business is not a joint venture vehicle with limited liability for two unrelated parties.

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