Limited Liability Partnership Firm –

Limited Liability Partnership (LLP) is governed by Limited Liability Partnership Act, 2008.

Nowadays it has become very popular form of business as there are many benefits while comparing with regard to company. Therefore, many entrepreneurs are opting this. 

What do you mean by Limited Liability?

Limited liability means where personal assets of the partners are not used for paying off the debts (Loans) of the LLP.

A limited liability partnership (LLP) is a partnership where partners have limited liabilities. It is a combination of partnerships and company. All partners will have protection of a registered company and one partner will not be liable for any wrongdoing or mischief of another partner. A LLP provides limited liability protection for the owners from the debts of the LLP.

Therefore, same as in a company, where shareholder have limited liability up to the face value of the share, same in LLP partners have limited liability upto the amount of capital contribution.

So all partners in a LLP gets a benefit of limited liability protection However, unlike in company where Directors manage the running of business, in LLP partners (Designated Partners) shall run and manage the business.

How Easyservicing Help You To Incorporate Limited Liability Partnership

We at Easyservicing provide LLP registration and compliances services in India, which help partners to start a Limited Liability Partnership FIrm and helping customers in selecting the best legal entity in India.

We provide online Limited Liability Partnership registration services at very econimial price, which is very fast and easy, to our global clients in India & across the globe, which meet client's requirements and expectations completely.

Process

Advantages

  • Easy to form- Forming an LLP is an easy process.
  • Low Cost of Start-up - Incorporating a LLP has low cost than a company
  • Liability- The partners of the LLP is having limited liability
  • Perpetual succession- The life of the Limited Liability Partnership is not affected by death, retirement or insolvency of the partner.
  • Partners are the Managers- All the decisions and management decisions are taken and done by the directors of the company.
  • Easy transferability of ownership- Admission, retirement and transferring the ownership are very easy.
  • Taxation- Limited liability partnership various taxes such as dividend distribution tax and minimum alternative tax are not charged.
  • No Statutory Audit– LLP’s are free from the burden of annual statutory audit by a Chartered Accountant.
  • Easy to wind-up - Unlike a company, LLP is easy to windup

Disadvantages

  • Not covered all states- Many states restrict incorporation of LLP.
  • Restricted Access to Capital Markets- Cannot raise money from public
  • Less reliability- Many people do not consider this as a reliable business. People still trust more on company or partnerships.
  • Greater penalties- As compliances are limited but penalties are relevantly heavier than company
  • LLP Act, 2008 Compliances- Various compliances are required to comply with the provisions of the act.
  • Lack of recognition- As LLP is introduced in India in 2009 only it is not recognized by all. People are not likely to form LLP

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