Limited Liability Partnership (LLP) was introduced in India by way of the Limited Liability Partnership Act, 2008. The basic thought behind the introduction of Limited Liability Partnership (LLP) is to provide a Simple form of business entity Which is to maintain while providing limited liability to the owners. The main advantage of a Limited Liability Partnership over a traditional partnership firm is that in a LLP, one partner is not responsible or liable for another partner’s misconduct or negligence. A LLP also provides limited liability protection for the owners from the debts of the LLP.
Features of LLP :
1. It has a separate legal entity just like companies.
2. It can own property and also incur debts.
3. LLP continues to be in existence irrespective of the changes in ownership.
4. The liability of each partner is limited to the contribution made by the partners.
5. The cost of forming an LLP is low.
6. simple compliance formalities.
7. No requirement of minimum capital contribution.
8. Company name is mentioned as (Business name LLP).
