Limited Liability Partnership is a combination of both partnership and corporation. Limited Liability Partnership is a corporate business form which provide the benefits of limited liability to the partners at less compliance costs. LLP protects the owners from financial liability. There is a flexibility of partnership in Limited Liability Partnership. There is no requirement of Minimum Capital Contribution in LLP. There is less restrictions and compliance imposed on a LLP by the Government as compared to the restrictions imposed on a Company.
The Limited Liability Partnership can continue its existence even if there are changes in partners. LLP is capable of going into contracts and holding property in its own name. A LLP can incorporate minimum 2 number of partners. There is no maximum limit on the number of partners of LLP. There should be a minimum of two designated partners among the partners who shall be individuals, and any one of them should be a resident in India. The cost to form a LLP is low as compared to form a public or private limited company. The deference to be followed by the LLP is also low. Only two statements need to be filed annually, one is the Annual Return and a Statement of Accounts and Solvency.