Advantages of LLP in India compared to Partnership firms

In this post, I will discuss advantages of registering an LLP instead of a Partnership firm in India. I will cover some of the disadvantages of LLP as well.

Recently, we registered our new business firm - LoneStar Informatics LLP - as a "Limited Liability Partnership". We chose the type of business registration after considering several factors and comparing the benefits offered by the Sole proprietorship, partnership, LLP and Company registrations. Read more about different types of business registrations in India.

If you are planning to register a business in India, this blog may be helpful for you to choose what form of business registration is suitable for your needs.

What is an LLP in India?

LLP stands for Limited Liability Partnership. This is one of the different types of business registrations possible in India.

Advantages of LLPs

The main advantages of the LLPs are:

1. Ease of management and fewer complexities compared to Companies

2. Personal assets of partners are protected and separated from business liabilities. If you are business is under loss, you will lose only your business assets and not your personal assets. This is one of the big factors everybody like LLPs compared to Partnership Firms.

3. LLPs will have a registered name, approved by the government. Since LLPs are registered through the formal process and have gone through a formal legal process, they have better branding than proprietorship and partnership. Your business will have a much better reputation and trust among your customers. Read more about how to check company name availability.

LLPs offer clear advantages over Partnership Firms and Companies for small and medium sized business. A registered "Limited Company" in India (private or public) have a lot of complex formalities including mandatory director board meetings, auditing etc. The additional overhead in managing a Private Limited Company makes LLPs attractive for small firms.

Article by Tony John
Tony John is a professional blogger from India, who started his first Weblog in 1998 at Tony switched to blogging as a passion blended business in the year 2000 and currently operates several popular web properties including,, and many more.

Follow Tony John or read 701 articles authored by Tony John

Related Articles

How much it will cost to register an LLP in India?

Are you looking for information on how much it will cost to incorporate a company in India? We recently registered an LLP in Bangalore, India. In this post I will share my experience on registering an LLP in India and talk about various costs involved in incorporating a business in Bangalore, Karnataka.

Different types of Business entities in India

Are you planning to start a business in India? I this blog, I am sharing what I learnt during my business registration process in India. I will cover different types of business entities possible in India.

More articles: Register LLP in India Business registration in India


Guest Author: Anirudhra19 Dec 2011

Everything is fine ji, it would be great to have dis-advantages posted as well.

  • Do not include your name, "with regards" etc in the comment. Write detailed comment, relevant to the topic.
  • No HTML formatting and links to other web sites are allowed.
  • This is a strictly moderated site. Absolutely no spam allowed.
  • Name: