What is limited liability partnership?
1. LLP structure is available for use by any enterprise.
2. It has a low formation cost and is easy to set up.
3. LLP is a separate legal entity and distinct from the individual partners.
4. Liability of each partner is limited to his share as mentioned in the agreement compared to regular partnership firms which have unlimited liability.
5. There are few restrictions and compliance enforced on a LLP by the govt when compared to the restrictions enforced on a company.
(The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)
2. It has a low formation cost and is easy to set up.
3. LLP is a separate legal entity and distinct from the individual partners.
4. Liability of each partner is limited to his share as mentioned in the agreement compared to regular partnership firms which have unlimited liability.
5. There are few restrictions and compliance enforced on a LLP by the govt when compared to the restrictions enforced on a company.
(The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)