LLP in India
A Limited Liability Partnership (LLP) is a corporate business structure introduced in India under the LLP Act, 2008. It combines the benefits of a partnership and a company, offering flexibility and limited liability to its partners.
Key Features:
Separate Legal Entity:
The LLP is distinct from its partners.
Limited Liability:
Partners’ liability is limited to their agreed contribution.
No Minimum Capital:
There is no minimum capital requirement.
Perpetual Succession:
The LLP continues to exist irrespective of changes in partners.
Advantages:
- Ideal for professionals and small businesses.
- Easy compliance and lower operational costs compared to companies.
- LLPs are popular among startups and service-oriented businesses due to their flexibility and legal protection.