Features of Limited Liability Partnership (LLP):
- Every Limited Liability Partnership must have at least two designated partners. And one of the designated partner should be resident in India. There is no maximum limit on the number of maximum partners in the entity
- Perpetual Succession
- LLP Agreement
- Artificial Legal Person
- The liability of each partner is limited
- It is a separate legal entity
Why Limited Liability Partnership (LLP)?:
- It operates based on an agreement
- It is easy to dissolve or wind-up
- It has a flexible capital structure
- By pooling resources, the partners lower the costs of doing business while increasing the LLP’s capacity for growth
- A partnership agreement exists for an LLP, partners can be added or retired as outlined by the agreement. LLP has the ability to bring partners in and let partners out.
- Less restriction and compliance
- Internationally renowned form of business in comparison to Company