What is a Limited Liability Partnership in Kenya?

A Limited Liability Partnership is a Legal entity that combines the features/elements of a Company and the more traditional partnership, this is because it offers limited liability thus protection to its partners the same as a Company does to its shareholders.

The important features of a Limited Liability Partnership are as below:

• LIMITED LIABILITY

This is an important feature of an LLP as the liability of the partners is Limited, hence a partner in the LLP is not personally liable directly or indirectly for obligations  in the partnership, however individuals are liable for their own wrongful acts or omissions.This defers from the general partnerships where liability of partners is usually unlimited.

• MEMBERS

A limited liability partnership must have at least two partners and one manager. The manager must be a natural person and above the age of eighteen (18) years and can also be one of the partners.

• SEPARATE LEGAL ENTITY

The business usually acquires a corporate identity distinct from its members. This is a great advantage over the general partnership as it can enter into contracts in its own name, hold property in its own name and it can sue and be sued in its own name. The death or exit of a partner does not affect the existence of the Limited Liability Partnership. 

• TAXATION

Taxation in a Limited Liability Partnership is usually on an individual level and not the entity level hence the members in a Limited Liability Partnership are deemed self-employed and hence each partner will declare their profit and pay tax on their share of profit. 

Partners in a Limited Liability partnership are required to enter into a Limited Liability Partnership Agreement to outline their rights, duties and responsibilities.

A Limited Liability Partnership is required to be registered under the Business Registration Service, which can be found by clicking the following link: https://brs.go.ke

Conclusion

From the above it is clear that a Limited Liability Partnership is a well structured form of business that professionals seeking to conduct business can form.

In case you want to form a Limited Liability Partnership,  you can reach out to us on:

Email: info@kendikadvocates.co.ke
Website: www.kendikadvocates.co.ke
Tel: +254768028504

Disclaimer:
This information provided in this Article is intended as a general overview of the subject dealt with. This information is not intended to be, and should not be used as, a substitute for taking legal advice in any specific situation. Kendi & Company Advocates is not responsible for any actions taken or not taken on the basis of this information.