There are manifold types of business concepts, formats and companies that are there in the industry. Have you ever come across something like LLP? Well, LLP simply means Limited Liability Partnerships and these are type of commercial vehicles that mix up the features of partnership and company form of business. The arrangement of Limited Liability Partnership (LLP) got introduced in India in the shape or of Limited Liability Partnership Act, 2008 (it got notified on 31st March 2009).
The llp registration online is also easy and effective when you make up your mind for this type of concept. You must know that a Limited Liability Partnership mixes up the advantages of both the Partnership and that of company into a single shape of organization. In an LLP a partner is not accountable or responsible for the negligence or misbehavior of the other partner. In an LLP, all the partners out there are going to possess restricted liability for every single individual’s protection inside the partnership, somewhat similar to that of shareholders of a restricted company. However, contrary to the company shareholders, the partners share the right to manage the overall business directly. An LLP even restricts the personal liability of a specific partner for the mistakes, omissions, uselessness, or negligence of the LLP’s employees or any other representative.
It is a separate legal entity
LLP is a kind of separate legal entity. It simply means it is liable to the complete extent of its assets. It is crucial for you to know that the liability of the partners is kind of going to be limited to their decided contribution in the overall LLP. Moreover, no partner will be liable on account of the un-authorized or any sort of independent actions of other partners. As an outcome of this, it permits the individual partners to stay safe against joint liability created by the wrongful business decisions or any sort of misconduct of the other partners.
Quick perks of LLP (limited liability partnership)
There are numerous of advantages of LLP and some of these are given as under:
- Separate legal entity
- It is easy for you to establish it.
- There is utmost flexibility without imposing complete legal and procedural requirements
- Constant existence irrespective of changes in partners
- It is an Internationally renowned kind of business contrary to Company
- LLP & its partners are considered to be separate from each other
- Convenient to dissolve or shut down.
- No limitations are there since to maximum number of partners
- There is less cost of formation (if you compare it to ay company)
- Partners are never accountable for Act of other partners.
- There is no requirement of minimum capital contribution
- The personal assets of any partner are not exposed without in case of fraud.
- No need to upkeep statutory records excluding Books of Accounts
To sum up, if you are all set to get into this world of LLP, go ahead. Make sure that you do limited liability partnership company registration before you venture.