If anyone wants to start a business or a
startup, then the first important task of the person must be company
registration. There are many types of company registration, and an
entrepreneur should have some knowledge about every kind of company before
registration of the company. In this blog, we will discuss in-depth about the
Limited Liability Partnership and its features.
Introduction to Limited Liability
Partnership:-
Earlier, If we had to start a business with
two or more partners, then we had only two choices, and that is: we can
establish a partnership firm of a Private Limited Company. The concept of
Limited Liability Partnership has come from the Private Limited Company and
Partnership, where the LLP gets the benefits and flexibilities of both the kind
of companies.
The LLP is governed under the LLP Act 2008.
The LLP company is registered the same as the Private Limited Company to the registrar
of companies.
To register for an LLP company, there
should be minimum of two directors, and the maximum number of directors is
unlimited in LLP. Foreign partners are
also allowed in the Limited Liability Partnership Company. If any bankruptcy
occurs or if the owner of the company expires, even though the LLP company has
the option of perpetual succession like the Private Limited Company.
#Features of LLP Company:-
The Liability of the shareholder is
limited, and it is limited up to the shares taken by the shareholder. There is
no joint liability in this company.
There can be medium compliance's to the LLP
compared to the other kinds of company. If the compliance's are less, then the
expenses are also less.
The person has to sign an agreement to
start this company, and no other governing documents are required to establish
this kind of company.
In this company, the partners are itself
the owner of this company and take whole management responsibilities.
If you want to start a company with your
partners and want fewer compliance then you should register for Limited
Liability Partnership company. Compared to the other types of companies, the
LLP has fewer compliance's and more liabilities.
Conclusion:-
The Company Registration is the first
important task of initiating a business or a startup. Each type of company is
right and gives many benefits to the owners. Hence you should choose the kind
of company that satisfies your requirements.
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