What is LLP?
A Limited Liability Partnership is a type of partnership in which partners liability is very limited. In limited liability the term “limited’’ denote that there is limited and partners are not entirely responsible for company. In an LLP, one partner is also not liable for another partner’s misconduct or negligence. This is the fundamental difference from that of an unlimited partnership.
Limited Liability professionals tend to rely heavily on reputation. Most important, reducing costs allows the partners to realize more profits from their activities than they could individually. The partners in an LLP can also have a number of junior partners in the firm who work for them in the hopes of someday making full partner. And junior partners have no stake in the partnership they are paid the salary for their work.
Under the Limited Liability Act, 2008 LLP company registration was introduced to provide a company registration that is simple to incorporate and offers the limited liability to the owners. The LLP company registration has become popular in recent years among the startups and businesses. If you want to register an LLP company then we are here for your service. GSB Infotech is the leading consultant in LPP company registration. We offer a variety of services in company registration, society registration, Fssai license registration, section-8 company registration and other business advisory services. We can help you to get LLP company registration within 14-15 days.
Advantages of LLP registration | Importance of LLP –
Limited liability Protection- One of the biggest benefits of such a company is limited liability protection. These companies are treated as a single entity that makes the firm responsible for all debts if anything happens to the company or entity.
Separate legal entity: A private limited company is a legal entity, established under the Companies Act 2013. A member (Shareholders/Directors) has no personal liability to the creditors of a for the company’s debt.
Easy transferability: The ownership of the firm can easily be transferred by transferring the shares of the firm. Transferability or sharing the owners of the company becomes the major hurdle in unregistered partnerships.
Borrowing Capacity: Limited Liability Companies can also raise equity funds in India.