BENEFITS OF LIMITED LIABILITY PARTNERSHIP
Limited Liability Partnerships are often referred to in their abbreviated form as LLP. LLP’s were introduced in 2017 by the Partnerships Act 2017. There are several reasons why many entrepreneurs prefer to form a Limited Liability Partnership (LLP) rather than a Private Limited Company. LLPs are considered easier to set up and are comparatively hassle-free in day-to-day operations. It also has a lower compliance burden if there is minimal activity. Hence, many Entrepreneurs see it as advantageous to begin their organization in this manner.LLP’s may be suitable when the partners are members of an institute or individual earnings are clearly defined and not just put into one pot and given out as dividends. Within an LLP the earnings of the members are normally seen as personal income
SOME BENEFITS OF SETTING UP LLP
The following are the benefits of incorporating an LLP.
- Separate NTN receive
- Separate sale tax number issue
- 100% Name Security
- Director’s liability is limited (loss not transfer personal)
- Less Compliance
- Audit not mandatory
- Share from Profit Exempt
- No Minimum Capital Requirement
- Partners have Limited Liabilities
- Get Liability Protection
- Participants have flexibility in their business ownership thanks to limited liability partnerships.
DOCUMENTS & INFORMATION REQUIRED TO SET UP LLP
- Tenancy Or Lease Agreement
- Business Address
- Business Activity
- KE Bill Paid (not later than 3 months)
- Partners Cnic (All partners Cnic scan front & back)
- Partners Ntn
- Partner Share In business
- Partner Email Id
- Partner Mobile Number
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