Understanding Limited Liability Partnerships and their Compliances
Limited Liability Partnership is a form of business association. The benefit of LLPs is that it poses dual benefits of a partnership as well as of a corporate company. Registrar of companies with the Ministry of Corporate Affairs regulates or set a framework for the functioning of the LLPs. Why LLPs are preferred over other business association options can be understood by evaluating the benefits. The benefits can be listed as follows:- • Limited Liability means Limited Risk LLPs enjoy a distinct entity and hence, the liability of the entity may be enforced on the partners or investors only to a certain extent. This prevents unlimited liability or risk for investors. • Ability to perform buying, selling or holding transactions By having a distinct legal setup, the LLPs can engage in buying or selling of assets movable or immovable in nature. They may also ind...