What are the advantages of an LLP?

Name: Vijay R Singh & Co.
Address: Office No. 4, Vishal CHSL, D Wing, Sir Mathuradas Vasanji Road, Azad Nagar, Opp. Andheri Gymkhana, Andheri East, Maharashtra, 400069, IN
Telephone: +91 98607 23959

CA Vijay R Singh, FCA
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W

Short answerAn LLP gives limited liability and a separate legal identity like a company, but with fewer compliances, no mandatory audit below thresholds, no dividend distribution tax, and partners’ profit share is tax-free in their hands. It suits professional firms and bootstrapped businesses.

Key advantages

Limited liability + separate entity
Lighter compliance, audit only above thresholds
No DDT; partner profit share exempt

Who it suits

Professional firms, family businesses and bootstrapped ventures that won’t raise equity.

NRI Taxation

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This answer is general information for NRIs, not tax advice. Tax rates, thresholds and forms change with each Finance Act — please confirm the current position for your own facts, or speak to us, before acting.