LLP refers to Limited liability partnership and is governed by Limited Liability Partnership Act 2008. Limited Liability partnership provides advantage of limited liability to its owners and at the same time requires minimal maintenance.
The directors of a private limited company have limited liability to creditors. In case of default, banks / creditors can only sell company’s assets and not personal assets of directors.
Benefits of an LLP Registration
- Limited Liability:
- No minimum capital requirement
- No audit requirement
- Easy transfer of ownership
- Separate legal entity