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.

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.