Liability Limited
The most basic advantage of an LLP is that no limited capital is required; Therefore, the liability of the partners is limited to their capital contribution. A limited liability partnership can be set up with a minimum amount of cash.
Compliance Minimum
LLP formation costs are lower than those of companies. Compliance is minimal, with only two annual forms required. Statutory audits apply based on specific partner contributions and turnover.
Market Recognition
An Limited Liability Partnership, akin to a company, is distinct from its partners, enabling independent legal actions, contract engagements, asset ownership, and borrowing capabilities.
Taxation Benefit
LLPs are tax-exempt entities, not liable for taxes on income or partner shares, eliminating dividend distribution tax. Deductions include bonuses, commissions, compensation, interest, and partner salaries.
Management Easy
Under the LLP Act of 2008, partners have autonomy in managing and administering the LLP according to their preferences, enabling them to establish customized operational regulations.