Limited Liability Partnership (LLP)

Limited Liability Partnership (LLP) is a balanced body, holding benefits traditional partnership and still confining the personal liabilities of the partners.

It is controlled as a contractual agreement among the partners under the Limited Liability Partnership Act, 2008. It has rapidly become a famous alternative for services and professional firms such as Chartered Accountants, Hiring Firms, Consulting Enterprises, etc.

It is equivalent to private limited companies in relation to compliance and functional needs. Deemed as a detached legal body than the partners, it can contract or engage in any legal trials in its own name.

That allows the partners of an LLP to detach business debts being healed from their individual assets. Compliance demand here is higher than constant partnership firms. Although contrasted to a private limited company body, it’s simpler to incorporate and preserve.

Advantages of Registering Your Business As An LLP

Limited Liability of Partners

Since an LLP can become involved in a contractual relationship in its own capability, it renders an excellent benefit to the partners for confining their individual risk.

Any partner who possesses a liability of financial contribution is limited to the capital contribution according to the LLP agreement.

Many new era enterprises prioritize LLP registration more than partnership so that their individual assets stay safe in the event of a loss, or even bankruptcy. Moreover, one partner isn’t held accountable for the actions of carelessness or wrongdoing of any other partner.

Functional Flexibility

LLP Agreement, deed between partners of an LLP, explains the functioning structure comprising of rights and duties of the partners.

Generally, LLP would choose a “Designated Member” who would manage everyday operations. It can have individuals or existing enterprises as members. Additionally, this structure enables to determine clearly the roles of partners and their individual obligations. It could also support in defending partner’s interest in the event of a loss as of an unlawful act of any other partner.

Segregated Legal Existence

Registration of LLP builds a segregate legal identification than its partners. Regulated by the LLP Act, 2008, it enables the business to deal with other bodies, takes legal steps, own assets and avail funds on behalf of an LLP itself. It’s a great benefit that isn’t available to a constant partnership firm.

Reduced Compliance Need

A core advantage of registering an LLP over a private company is lower compliance need. It does not possess a compulsory audit until a particular level of turnover or contribution.

Dissimilar to companies, compliances connected to board meetings, statutory meetings, etc. don’t apply for LLPs. Professional services for compliance are usually available at lower rates than that for companies, making it less expensive to preserve an LLP.

LLP Registration is Simple with Careful Counting

The procedure of LLP registration in Delhi, India is rebuilt by the Ministry of Corporate Affairs. A more rapid procedure of LLP incorporation was made available on October 2, 2018, in context of the ease of performing business initiative by the government.

Experts at Careful Counting have supported hundreds of businessmen with limited liability partnership firm registration process in Delhi, India. Let us help you too!