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Understanding LLP - Limited liability partnership for India

LLP or Limited Liability Partnership is fast catching up as a choice of business structure for many small businesses in India . In this episode of eLagaan Whiteboard Friday, the eLagaan team explains the advantages & disadvantages of having a LLP as the business form for your company.

The video talks about the advantages of having a limited liability with an LLP can be a huge advantage over a sole proprietorship or general partnership. It talks about ease of management and low cost to start and operate the business as well as international recognition and being able to access FDI (foreign direct investment) in you firm.

It also talks about some of the limitation of LLPs vs Pvt. Ltd. Company. Many of them related to expanding business beyond a certain level as well as securing funding from venture capital as well as no option to issue stock options. It also touches on the point that at the time of making this video you can not convert the LLP to a Pvt Ltd Company, and hence can be painful to do if that is something you aim to do in the future.

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