LIMITED LIABILITY PARTNERSHIP (LLP)

WHAT IS A LIMITED LIABILITY PARTNERSHIP?

Incorporation of a Limited Liability partnership is a new structure brought into existence by the LLP Act, 2008with an intention to give flexibility to the existing partnership firms to convert their business into a Legal Entity or to the new businesses deriving to become a Legal Entity where the Liability of the Partners is Limited to the agreed contribution that they have in the Company in accordance with the agreed terms of all the partners penned down in LLP Agreement.

WHAT ARE THE ADVANTAGES OF SETTING UP LLP?

1. LLP creates a separate Legal Entity


2. LLP Agreement is signed between the parties/partners to the company which makes it easy for the partners to define the rights and liabilities of each other in the company.


3. LLP consists of compliances which are lesser than that in aPvt Ltd Company structure so there is a less cost incurred in compliance.


4. In the LLP agreement, Partners can agree to any amount of contribution as to their own consent and the Liability of each Partner in LLP exists only to the contribution agreed and mentioned in the agreement

WHAT IS THE TIME TAKEN IS INCORPORATING A LIMITED LIABILITY PARTNERSHIP?

Incorporating a Private Ltd Company can take a maximum of 15-20 days depending upon the validity, completeness and correctness of the documents submitted by the Partners.