A limited liability partnership is a unique business entity having the qualities of both a partnership firm and a Private Limited Company. Needless to say, for veterans who are looking to hit the ground running and achieve success quickly, LLP is the desired business entity. Why? Let’s explore the five main benefits of incorporating a Limited Liability Partnership.
As far as the age of business entities, a limited liability partnership is the youngest. Envisioned in 2008 with the introduction of the Limited Partnership Act, it is one business entity that caught the eye of veterans and entrepreneurs alike pretty early. With each passing day, more people have found themselves to be interested in this business entity for their enterprise. Why is that the case?
Well, the reasons are the top 5 benefits that one gets to enjoy upon establishing a limited liability partnership.
You don’t need any capital for LLP registration
You don’t invest anything other than time to start an LLP in India. As there is no minimum capital limit, you can just as well take a coin and incorporate your limited liability partnership. When you compare it to a public limited company, an entity that you can only start if you have 5 Lakh rupees, starting an LLP starts to feel like a good deal.
Have as many members as you want
Don’t limit yourself to the restrictions that come with a private limited company. With an LLP, you can go for far more than 200 members in your business. Get a chance to expand your pool of revenue and pool of expertise by adding more members with the passage of time. However, remember where there is a reward, there are also risks. But if you are willing to take them, you can blissfully walk towards success.
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The cost of business registration is low
If the business registration cost of a partnership firm or a limited company has always bothered you, LLP has got you covered. Costing only a nominal professional fee (and no government fee), you can draft your LLP agreement and incorporate your business entity in just two weeks.
Have no worry about filing compulsory auditing
Auditing is the biggest leash around the neck of most businesses. What most think is a way to make an enterprise perform with integrity can actually choke a business because it removes all sense of flexibility. That’s why, if you don’t want to be bothered by auditing requirements for your accounts, you should choose a limited liability partnership.
Save money because of fewer compliances
Filing compliances is mandatory, but it also costs money. As you are not the one who files compliance, but instead an expert does it in your stead, dealing with compliance can be expensive. Not with an LLP though. Only requiring Annual returns and statement of accounts and insolvency, a Limited liability partnership lets you be free from many regulatory compliances that would have diverted your attention away from your business.
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You can choose whatever business entity you want to choose, but to run a successful enterprise, the enterprise you choose must work for you. And that’s what an LLP does, it works for you. By reducing the compliances, lowering the business registration costs while allowing you to onboard as many members as you want, this business entity is the ultimate motivator.
Incorporate it today with the help of our experts.