LLP has many features and benefits which makes it ever rising forms of business especially in the service sectors. Since 2008, when the concept of LLP was introduced in India, we have seen big corporates are going towards LLP. SMEs find LLP very much suitable for their business as they save money in compliance cost as well.

Limited Liability: One of the best features of LLP registration is that the liability of the person who invests money into the business (also known as partners) will be limited to the amount invested by them which also means that personal property of the partners will remain safe and secure. This feature is not available in normal partnership firms. This limited liability builds confidence of young entrepreneurs to fulfil their dream of having their own Business entities registered with the Ministry of Corporate Affairs.

Separate Legal Entity: The separate legal entity feature gives LLP the space to keep yourself and the LLP at length recognizing both as separate identity. In the eyes of law, LLP and its Representatives are different personalities and LLP can sue and be sued on its own name without the name of its partners/ designated partners.

Perpetual Succession: LLP continues to exist until it is formally closed down either by the Partners or the ROC. This is what makes the registered LLP different from partnership firms where on the death of partners, the partnership firm ceases to exist but in case of registered LLP, even the death of all partners/ designated partners cannot stop the LLP to exist.

Easy exit and transferability During the lifetime of any LLP, if all or any of the partners wish to exit from the LLP, they can do so by simply transferring their contributions. It is very easy to change management too. This gives partners the freedom to take informed decision whether to continue or not at any given point of time.

Owning Property: LLP being a legal person can own property on its own name through its Legal Representative. The Property includes Intellectual Property (IPR) such as Trademark, Copyright, Patent and Design too. LLP can also mortgage property the same way as a natural person to banks or any other financial institution.

Borrowing Capacity: LLP being a Legal Person, when there comes a requirement to borrow capital or funds, it can be done through various modes of borrowing. Some of them could be Private Borrowing/ Angel Investor/ Venture Capitalist/ Short-term capital from Partners or their Relatives and Debts through Banks or FIIs.

Investment Ready: Any Investor who is looking to make investment generally prefers LLP than any other business structure. This is what makes an LLP investment ready. LLP can also get itself registered under DPIIT (Earlier DIPP) Scheme of Start-up India under Ministry of Commerce & Industry, Govt. of India to enjoy numerous benefits which the Indian Govt comes up time to time.