LLP

Limited Liability Partnership (LLP) was introduced in India by way of Limited Liability Partnership Act, 2008. Basic premise behind introduction of Limited Liability Partnership (LLP) is to provide form of business entity that is simple to maintain while providing limited liability to the owners. Since, its introduction in 2008, LLPs is well received with over 1.2 lakhs registrations in India. LLP is one of the easiest types of business to incorporate and manage in India. With an easy incorporation process and simple compliance formalities, LLPs are preferred by Professionals, Micro and Small businesses that are family-owned or closely-held. Since LLPs are not capable of issuing equity shares, LLP should NOT be chosen for any business that has plans for raising equity funds from Angel Investors, Venture Capitalist or Private Equity Funds. Authority: LLPs are registered in India under the Ministry of Corporate Affairs, Central Government. Partnership firms are registered with the Registrar of Firms, Controlled by the respective State Government in which the firm is registered.