Since, Limited Liability Partnership is a hybrid of a company and a partnership and also are comparatively hassle-free in a day to day operations, as it provides the combination of benefits of both a company and a partnership to the management of the company. There are many LLP benefits which other forms of business do not get these are mentioned below:
The LLP benefits are:
The first and most important of LLP benefits is that there is no limited capital required against the firm so the Liability of the Partners is restricted towards their Contribution of capital so made. The Limited Liability Partnership can be easily formed with the help of the least possible capital.
No Limited Contribution
The second one in LLP benefits is to know which type of asset or capital to be contributed The contribution of the partners may consist of :
- Tangible Property
- Movable Property
- Immovable Property
- Intangible Property
There is no as such Assets/Property/Capital required to get registered for the Limited Liability Partnership. On the other hand to get registered for the Private Limited company the partners must contribute the minimum capital of Rs. 1 lakh and for the Limited Company the partners must contribute the minimum capital of Rs 5 lakh.
As compared to other forms of business the Limited Liability Partnership is the easiest form of business as it gets most of the benefits than other forms of business some are mentioned above.
Also, read the related topic- Steps to register Limited Liability Partnership (LLP)