The Limited Liability Partnership (LLP) is an incorporated business organization, which possesses elements of both a Partnership Firm and a Limited Company. In limited liability partnership, some of its partners have limited liability like shareholders to a corporation. However, in some countries, there is at least one partner with unlimited liability. Again, the designated partners to LLP have the right to manage their internal and external business affairs directly, in accordance with the LLP Agreement. Its every partner has its own responsibilities and liabilities, and one is not responsible or liable for any misconduct, negligence, or delinquency of other partners to LLP.The limited liability partnerships are prominent and popular form of doing businesses in countries of all across the world. These LLPs are elegant and easy means of combining entrepreneurial initiative with requisite capital and other resources, the professional expertise, and creative knowledge about the business concerned. The taxation liabilities of LLP are different, and generally less than that of the business corporations. Other benefits of limited liability partnerships are outlined in the section below.
LLP Registration Benefits
The outstanding salient features or benefits of the limited liability partnerships are:
- A legally recognized, separate entity
- Limited liability to some partners
- Lesser tax liability than corporations
- Freedom to sort out their management and business affairs directly
- Simple and quick process of registration
- Perpetual existence, irrespective of changes in partners
- A minimum of two partners are required for its formation
- No restriction to the maximum number of partners
- No minimum capital contribution recommendations
The LLP registration essentially includes the obtaining of Designated Partner Identification Numbers (DPINs), Digital Signature Certificates (DSCs), approval and reservation of name, and preparation of LLP Agreement,