A Limited Liability Partnership (LLP) is the best of both worlds:
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Like a partnership: flexible, simple agreement, shared ownership.
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Like a company: separate legal entity, limited liability.
🔹 Key Benefits
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Limited Liability Protection – Partners are not personally liable beyond their investment.
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No Minimum Capital – Start with any capital amount.
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Tax Efficiency – LLPs avoid dividend distribution tax applicable on companies.
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Perpetual Existence – Continues even if partners change.
🔹 Registration Process
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Obtain DSC & DIN for partners
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Reserve LLP name with MCA
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File incorporation documents
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Draft & register LLP Agreement
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Get Certificate of Incorporation
🔹 Best Suited For
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Small to medium businesses
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Professional firms (consultants, CAs, lawyers, architects)
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Startups that want flexibility with liability protection
🔹 FAQs
Q1. Minimum partners required?
At least 2 designated partners.
Q2. Can LLP be converted later?
Yes, LLP can be converted into a Private Limited Company.