Limited Liability Partnership(LLP): Basic Guide

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 What is Limited Liability Partnership (LLP)?  Benefit and negative points fully explained

Today we will discuss what is LLP (Limited Liability Partnership).  What are the benefits of LLP and what are the negative points of LLP?  LLP should be registered for any type of business.


Definition of limited liability partnership (LLP)

Limited Liability Partnership (LLP) is an incorporated partnership formed and registered under the Limited Liability Partnership Act 2008 (‘The Act’) with limited liability and perpetual succession.

Why LLP concept is needed

Pvt.  Ltd.  Co.  It has its own Benefits and Flexibility of Partnership firm and the combination of these two is Limited Liability Partnership (LLP) you understand it in short form.  And its registration is LLP Act 2008 Registration with ROC.  So LLP is considered to be a little more convenient.  Therefore, Limited Liability Partnership (LLP) is required for small companies.

Benefits of Limited Liability Partnership (LLP)

Benefits of Limited Liability Partnership is Liability Limited here too.  Limited Liability Partnership (LLP) Minimum Shareholder 2 Only then you can register Limited Liability Partnership (LLP).  And there is no maximum limit. Limited Liability Partnership (LLP) Company Foreign Parthner allowed.

Another benefit of Limited Liability Partnership (LLP) is.  If for any reason the shareholder of that company is not present or does not survive or for any reason that shareholder is not present then the company will not be closed.  In this case, the LLPO continues as a private limited company. In a word, it is called Perpectual Succession.

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Negative points of Limited Liability Partnership (LLP)

In Limited Liability Partnership (LLP) the partners that manage the company.  So I don't want any investor to invest in Limited Liability Partnership (LLP).  Limited Liability Partnership (LLP) does not have proper structure.  Limited Liability Partnership (LLP) cannot be listed on the stock exchange.

 If you are starting a small company and the partner is an outsider and you do not trust him or trust him, it is better to register Limited Liability Partnership (LLP).


 You can contact us if you want to know more about Limited Liability Partnership (LLP).