Limited Liability Partnership (LLP) has become a preferred form of organization among enterpreneurs as it incorporates the benefits of both partnership firms and companies into a single form of organization.
Limited Liability Partnership (LLP) has become a preferred form of organization among enterpreneurs as it incorporates the benefits of both partnership firms and companies into a single form of organization.
1. It Has A Separate Legal Entity Just Like Companies.
2. The Liability Of Each Partner Is Limited To The Contribution Made By The Partner.
3. The Cost Of Forming An LLP Is Low.
4. Less Compliance And Regulations.
All LLPs registered with the Ministry of Corporate Affairs need to file Annual Returns and Statement of Accounts for every Financial Year. It is mandatory for LLP to file a return irrespective of whether it has done any business. There is three mandatory compliance. For further information on compliance, you have to contact with our representatives.
The information relating to the company such as name of the Company, date of incorporation, registered office address, status of the Company are made available in a publicly searchable database i.e. MCA. This feature increases the credibility between the customer, vendors and investors.
An LLP is a separate legal entity from its partners. On incorporation it will be issued with a unique registration number, in the same way as a limited company. This registration number will stay the same throughout the lifetime of the LLP, even if the LLP changes its name.
The liability of each shareholder is limited. In simple words, a shareholder of a public limited company isn’t personally responsible for any loss or debts of the company for any amount greater than the amount invested by them; contrary to partnerships and sole proprietorships, where the partners and business owners are jointly and severally liable for the debts of the business.
An exit plan is essential for every entrepreneur to get rewarded for all their hard work. Any individual or entity can transfer or sell their shares anytime in part or whole without any restrictions.
LIt is essential for your businesses to grow quickly and limited Company have the ability to attract funding from any source i.e. angel investors, private equity firms or any other entity by way of issuing shares, transferring shares/debentures or otherwise.
In public limited Company Foreign Direct Investment is allowed upto 100% under automatic route which means any foreign entity or person can invest in company with prior approval.