Limited Liability Partnership (LLP) is gaining popularity with its ample benefits it provides to the entrepreneur. LLP is a business entity that incorporates the limited liability of a company and the flexibility of a partnership.
There are many factors an entrepreneur should examine before choosing the type of business one plans to register. The size and nature of the business, fundraising, scale, etc should be considered before choosing the type of business entity. Here is a list of some of the reasons why you should register your business as a Limited Liability Partnership.
Easy to Start
It is easy to start and manage a business like entrepreneurs. LLP agreements are tailored in accordance to fulfill the needs of partners concerned. There are some formalities in areas of legal compilation, annual meeting, resolution as compared to any other Private Limited Company.
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No minimum capital requirement
LLP can be formed with a minimum amount of capital money. Capital may be in any form of tangible, movable assets like Land, machinery, or intangible form. The minimum Capital requirement in the case of a Private Company and Public Company is Rs. 1, 00,000, and Rs. 5,00,000 respectively whereas there is no such mandatory capital requirement required for the LLP Registration.
An LLP as a legal entity is proficient in owning its funds and other properties. The LLP is the real person in which all the property is authorized and by which it is controlled, managed, and disposed of. The property under the name of LLP is not the property of its partners. Therefore partners cannot demand any property in case of any dispute among themselves.