Limited Liability Partnership (LLP) was introduced in India by way of the Limited Liability
Partnership Act, 2008. The basic premise behind the introduction of Limited Liability
Partnership (LLP) is to provide a form of business entity
that is simple to maintain while providing limited liability to the owners.
The main advantage of a Limited Liability Partnership over a traditional partnership
firm is that in a LLP, one partner is not responsible or liable for another partner's
misconduct or negligence. A LLP also provides limited liability protection for the
owners from the debts of the LLP. Therefore, all partners in a LLP enjoy a form of
limited liability protection for each individual's protection within the partnership,
similar to that of the shareholders of a private limited company. However, unlike
private limited company shareholder,
the partners of a LLP have the right to manage the business directly.
LLP is one of the easiest form of business to incorporate and manage in India. With
an easy incorporation process and simple compliance formalities, LLP is preferred by
Professionals, Micro and Small businesses that are family owned or closely-held. Since,
LLPs are not capable of issuing equity shares, LLP should be
used for any business that has plans for raising equity funds during its lifecycle.
SURYA CONSULTANCY SERVICES SERVICES can help you register a private limited company, one person
company, Nidhi company, section 8 company , producer company or Indian subsidiary. The
average time taken to complete company formation is about 10 - 15 working days, subject
to government processing time and client document submission.
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