LLP Registration
Advantages of LLP over mere partnership
LLP is a legal entity and hence could be sued or it can use others without involving the partners. Moreover the partners would not be liable beyond the money (represented by partnership assets) they have contributed or have agreed to contribute to the Capital. Thus there would not be called upon to contribute to the liability incurred by any other partner in relation to the LLP during its conduct of the affairs.
The retirement or death of a partner would not dissolve the LLP but the LLP would continue to exist even after that without the necessity of any formality for renewal of LLP. Since a LLP is a legal entity, the properties acquired by the LLP could be held in its own name and need not be in the name of the partners.
Whereas a partnership can be formed either orally or by a deed of agreement whether registered or not, LLP is informed by an incorporated document and an LLP Agreement, thus giving shape to some kind of concreteness, discipline and added legality. Whereas a registered or unregistered partnership cannot have more than 20 partners. LLP can be a partnership or unregistered partnership cannot have more than 20 partners. LLP can have more than that number since no upper limit has been laid down by the Act. The LLP can be a partnership between individuals and corporate entities whether resident or nonresident. There are no restrictions as regards the number of LLPs in which the same person could be a partner or even a designated partner.
