Limited Liability Partnership in India

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Limited Liability Partnership in India

Rs.16,999.00

Limited Liability Partnership was introduced in India by way of Limited Liability Partnership Act, 2008. The basic reason behind the introduction of Limited Liability Partnership (LLP) is to provide a form of business organization that is simple to maintain while at the same time providing limited liability to its partners. A Limited Liability Partnership combines the advantages of both the Company and Partnership into a single form of organization and one partner is not responsible or liable for another partner’s misconduct or negligence.

Therefore, all partners have a form of limited liability for each individual’s protection within the partnership, similar to that of the shareholders of a company. LLP is one of the easiest form of business to incorporate and manage and The Suits can help you start an LLP today.

Product Description

Limited Liability Partnership was introduced in India by way of Limited Liability Partnership Act, 2008. The basic reason behind the introduction of Limited Liability Partnership (LLP) is to provide a form of business organization that is simple to maintain while at the same time providing limited liability to its partners. A Limited Liability Partnership combines the advantages of both the Company and Partnership into a single form of organization and one partner is not responsible or liable for another partner’s misconduct or negligence.

Therefore, all partners have a form of limited liability for each individual’s protection within the partnership, similar to that of the shareholders of a company. LLP is one of the easiest form of business to incorporate and manage and The Suits can help you start an LLP today.

ADVANTAGES OF A LIMITED LIABILITY PARTNERSHIP

Separate Legal Entity

A LLP is a legal entity and a juristic person established under the LLP Act. LLP has a wide legal capacity and can also own property and also incur debts. The Partners of a LLP have no liability to the creditors of a LLP for such debts.

Uninterrupted Existance

LLP continues to be similar like a company and has succession. It does not shut down on exit of one partner or on death of a partner or likewise.

No Requirement of an Audit

LLP does not require audit if it has less than Rs. 40 lakhs of turnover and less than Rs.25 lakhs of capital contribution. Therefore, LLPs are ideal for startups and small businesses that are just starting their operations and want to have a minimal regulatory compliance related formalities.

Easy Transferability

The ownership of a LLP can be easily transferred to another person by introducing them as a Designated Partner of the LLP. LLP is a separate legal entity separate from its Managing Partners, so by changing the Managing Partners, the ownership of the LLP can be changed.

Owning Property

A LLP also being a juristic person, can acquire, own, enjoy and alienate, property in its own name. No Partner can make any claim upon the property of the LLP so long as the LLP is a going concern.

Limited Liability

Limited Liability means the status of being legally responsible only to a limited amount for debts of a LLP. Unlike traditional partnerships, in a LLP the liability of the members in respect of the LLP’s debts is limited.

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