The dynamic business environment we live in today calls for constant change and upgradation. In order to remain relevant, there is need for a business structure that appeals to business and service sectors alike with lesser restrictions and government intervention. The company form of business structure is one such favorite but not without its inherent limitations. It is now that Limited Liability Partnership (LLP), a form of business entity introduced in 2008, is coming into picture. Their popularity, however, is not as much as the benefits offered and the advantages over other forms of entities. LLP provides nearly all the benefits of a private limited company while eliminating the downsides of a partnership firm.
LLPs offer tax advantages, can accommodate unlimited number of partners and are credible of being registered with the Ministry of Corporate Affairs (MCA). At the same time they have fewer compliances than private limited companies and are also
significantly cheaper to start and maintain.
This publication provides broad overview of the incorporation and other aspects of LLPs under the LLP Act, 2008 and the LLP Rules, 2009.