Separate Legal Entity:- An LLP is a legal entity and a juristic person established under the Companies Act. It has its distinct name and is the creation of law. Being separate from its promoters/owners/ partners it can do business in its own name. It's a very easy form for doing business.

Less compliance:- There is no audit required up to 40 lakh rupees and less than 25 lakh capital contribution. That's why LLP is the best platform for small businesses and for a new startup.

Easy Transferability:- After registration of an LLP you can easily add any other partner after deciding his owner and contribution in LLP and also easily transferred to other's just you need to intimate to ROC after each and every changes in your LLP.

Area of business:- In an LLP the area of business in not limited after registration, you can build your team and globalize your business after few nominal document part. For doing business you have an open market you do your business with any doubts as you want.

Build own Property:- LLP can be purchased any kind of property like land, car, assets on the name of the company and they have also right to sell out their organization things but approval from all partner's side are required. Old designated partner's those have not any contribution in the LLP they have no right to claim LLP for its property.

• What is LLP?

  The Limited Liability Partnership (LLP) is a company/firm which offers the benefits of both the partnership firms and the incorporated limited liability companies. In India, these LLPs are registered and regulated as per the LLP Act of 2008, and the LLP Rules of 2009.

• What are the benefits of formation of a company as LLP?

  An LLP has no limit to the maximum number of partners. In the case of a private limited company, the maximum number of the shareholders has been kept at 200.The cost of incorporation of an LLP is lower than that for incorporation of a private or public limited company.

• What are the main features of LLP?

  The LLP shall be a body corporate and a legal entity separate from its partners. Any two or more persons, associated for carrying on a lawful business with a view to profit, may by subscribing their names to an incorporation document and filing the same with the Registrar, form a Limited Liability Partnership.

• Can a Salaried person become the director in LLP?

  Yes, a salaried person become the director in LLP, there are no legal bondages in this, but you have to go through with your employment agreement if it contains any restrictions on doing so. For government employee that is not possible if he/she is in a job.

• What are the Tax Policies for an LLP?

  For the purpose of taxation, LLPs are treated like Partnership Firms. The tax applicable to an LLP in India is 30%. In case, when the income of the LLP exceeds INR One Crore in any financial year, then Surcharge @ 10% will be applied.

• What are the compliances related to change in a partner?

  There is any change in Partner and DP (admission, resignation, cessation, death, expulsion) should be filed e- form 4 within 30 days of change with fees. And also Supplementary LLP Agreement to be filed e- form 3 with ROC within 30 days with fees given the alteration in mutual rights and duties of partners and Form 4 shall include a statement signed by the incoming partner that he consents to become a partner.