Limited Liability Partnership (LLP) is an incorporated business organization. It is a Body Corporate having the features of a Partnership Firm & a Limited Company. The management of LLP is defined by LLP agreement & partners have the freedom to regulate affairs of the LLP. Minimum two persons are mandatory to register a LLP and there is no restriction regarding maximum number of members.
Benefits of LLP
- Legal entity separation.
- Limited Liability to the partners
- Simple process of the registration
- Perpetual existence irrespective of changes in partners
- No requirement of audit of accounts until turnover reaches Rs.40 lakhs or contribution Rs.25 lakhs
- Less tax as compared to the company
- No necessity of minimum capital contribution
- No restrictions as to maximum number of the partners