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
