Features of Limited Liability Partnership (LLP)
Limits the personal liability
A Limited liability partnership or LLP provides limited liability protection to its
owners and partners. This means that if the LLP fails, the owners are not personally
liable for any debts or liabilities incurred. This provides a great deal of financial
security to the owners, as they are not at risk of losing their personal assets in the
event of a business failure.
Flexible management structure
An LLP can be managed by its partners or by designated managers. The management
structure is flexible and can be tailored to meet the needs of the business.
Separate legal entity.
A Limited liability partnership or LLP is a separate legal entity. This means that the
LLP is recognized by the law as an independent legal entity and is responsible for its
own liabilities and obligations. This provides the owners and partners with a great
deal of freedom as they are not personally responsible for any of the company’s
actions.
Easy and quick registration
The formation of a Limited liability partnership or LLP is relatively easy compared to
other forms of business organizations. There are fewer legal formalities involved and
the LLP can be formed in a matter of days.
Perpetual succession
A Limited liability partnership or LLP has perpetual succession. This means that the
LLP continues to exist even if its owners or shareholders die or leave the company.
This provides a great deal of stability to the company and allows the business to
continue even in the event of changes in ownership.
Pass-through taxation
An LLP is a pass-through entity for tax purposes, which means that the profits and
losses of the business are passed through to the partners and reported on their
personal tax returns.
No restriction on the number of partners
An LLP can have any number of partners, making it a suitable option for businesses with
multiple owners.
Fill the form and provide documents
Sign and share the documents
Filing of registration application with ROC
