Limited liability Partnership Registration
What is an LLP (Limited Liability Partnership Company)?
A Limited Liability Partnership is a corporate business form wherein the partners can enjoy the benefits of limited liability at low compliance costs. The LLPs are governed and administered by the Limited Liability Partnership Act, 2008.
A Limited Liability Partnership is regulated by a contractual agreement formulated amongst all the partners. Because of its simple registration process and lesser compliances, an LLP is mostly preferred by closely-held professional firms or small businesses. The company's name must have 'Limited Liability Partnership' or 'LLP' at the end.
Benefits of a Limited Liability Partnership
- The formation process is easy as a minimum of two persons are required to form an LLP. There's no set limit for the maximum number of partners.
- An LLP is considered as a corporate legal entity separate from its partners.
- The company continues to exist post the death, retirement or insolvency of one partner.
- Designated partners have limited liabilities
- It's easier for an LLP to get funding or borrow capital from banks/other financial institutions.
