Limited Liability Partnership entities, the world wide recognized form of business organization has been introduced in India by way of Limited Liability Partnership Act, 2008. A Limited Liability Partnership, popularly known as LLP combines the advantages of both the Company and Partnership into a single form of organization. In an LLP one partner is not responsible or liable for another partner's misconduct or negligence; this is an important difference from that of a unlimited partnership. In an LLP, all partners have a form of limited liability for each individual's protection within the partnership, similar to that of the shareholders of a corporation. However, unlike corporate shareholders, the partners have the right to manage the business directly. An LLP also limits the personal liability of a partner for the errors, omissions, incompetence, or negligence of the LLP's employees or other agents. CompanyMantra.com can incorporate a Limited Liability Partnership in 14 to 20 days, subject to ROC processing time.

Features:

1. It is more flexible to organize the internal structure of LLP.
2. There is no maximum limit for the no. of partners in LLP.
3. LLP is exempt of Dividend Distribution Tax (DDT). Company has to pay DDT on dividend distribution.

Advantages:

1. Renowned and accepted form of business worldwide in comparison to Company.
2. Low cost of Formation.
3. Easy to establish.
4. No requirement of any minimum capital contribution.
5. No restrictions as to maximum number of partners.
6. LLP & its partners are distinct from each other.
7. Partners are not liable for Act of partners.
8. Less Compliance level.
9. No exposure to personal assets of the partners except in case of fraud.
10. Fewer requirements as to maintenance of statutory records.
11. Less Government Intervention.
12. Easy to dissolve or wind-up.