Advantages
- Separate
legal entity
- Easy
to establish
- Flexibility
without imposing detailed legal and procedural requirements
- Perpetual
existence irrespective of changes in partners
- Internationally
renowned form of business in comparison to Company
- No
requirement of minimum capital contribution
- No
restrictions as to maximum number of partners
- LLP
& its partners are distinct from each other
- Partners
are not liable for Act of other partners.
- Personal
assets of the partners are not exposed except in case of fraud.
- Easy
to dissolve or wind-up
- Professionals
like CS / CA / CWA / Lawyers can form Multi-disciplinary Professional LLP
- No
requirement to maintain statutory records except Books of Accounts
- Less
Cost of formation (Compared to a company)
Disadvantages
- LLP
cannot raise funds from Public
- Any
act of the partner without the other may bind the LLP.
- Under some cases, liability may extend to personal assets of partners.
- No separation of Management from owners
Read more about LLP Registration in India
