A Limited Liability Partnership (LLP) is a hybrid of Company and Partnership form of business. It combines the advantages of both the Company and Partnership into a single form of organization. It enjoys the benefits of having a separate legal entity, flexibility in its structure and operation, perpetual succession and a limited liability. It would be useful for small and medium enterprises.

Advantages of a limited liability partnership

Body Corporate

Just like a Company, LLP is also body corporate, which means it has its own existence as compared to partnership.

Liability

A LLP exists as a separate legal entity from your personal life. Therefore, liability of designated partner is limited to capital contribution.

Perpetual Succession

The LLP shall continue to exist till its wound up in accordance with the provisions of the relevant law. Notwithstanding any changes in the partners of the LLP

Separate Property

A LLP as legal entity is capable of owning its funds and other properties. The property of LLP is not the property of its partners. Therefore, partners cannot make any claim on the property in case of any dispute among themselves.

Body Corporate

Just like a Company, LLP is also body corporate, which means it has its own existence as compared to partnership.

Capacity to sue

As a juristic legal person, a LLP can sue in its name and be sued by others. The partners are not liable to be sued for dues against the LLP.

Compliances

As compared to a private company, the number of compliances are on lesser side in case of LLP.

Easy to Form

It is very easy to form LLP, as the process is very simple as compared to Companies and does not involve much formality.

No Mandatory Audit Requirement

In case of LLP There is No statutory Audit requirement under companies Act, 2013