Limited Liability Partnership(LLP) Registration in India
Limited Liability Partnership ( LLP)
Limited Liability Partnership (LLP) combines the benefits of a partnership with that of a limited liability company.
In India, it took shape after January 2009 and was an instant success with startups and professional services.
The idea behind LLP was to provide a form of business that is easy to maintain and to help owners by providing them with limited liability.
The members of an LLP are only liable for a small amount of debt incurred by it. On the other hand, for proprietorships and partnerships, the personal assets of directors and partners are not protected if the business goes bankrupt.
LLP is a separate legal entity from the partners in it. It has an uninterrupted existence that follows perpetual succession, i.e., the partners might leave, but the business remains.
The terms of dissolution have to be mutually agreed upon for the firm to dissolve.
Flexible Agreement Transferring the ownership of an LLP is also simple. A person can easily be inducted as a designated partner and the ownership switches to them.
Suitable For Small Business LLPs having a capital amount less than ₹25 lakhs and turnover below ₹40 lakhs per year do not require any formal audits. This makes registering as an LLP beneficial for small businesses and startups.
CHECKLIST FOR REGISTERING A COMPANY IN INDIA