LLP is a legal entity which is registered under LLP Act 2009 and wherein Partner of LLP has limited liability. This is best way to start a small business with low operating cost.
Benefit for LLP
1. Liability of Each partner is limited.
2. There is the low cost of formation as well as low cost of maintenance.
3. Less compliance under LLP Act 2009.
4. Easy change from company to LLP and vice-versa
a. Designated Partner can be added and remove at any point of time in LLP, Form 3 required to filed.
b. For address change of LLP, Form 2 required to be filed and in case of address change outside the state approval to be taken from central government.
LLP have to register with a single object but lateron it can added and change their object. Like this LLP can also change their name at any point of time for extention of their business.
Closure of LLP
If business is closed then LLP also required to be closed to save the fixed cost. Closure have to be done as per the LLP Act 2009.
Conversion of Company to LLP
If a business owner required to be convert the company into LLP for saving the various compliances and operating cost of business then he/she can do the same.