It is very simple to start and manage a business like entrepreneurs. LLP agreements are personalized according to the requirements of partners involved.
Minimum capital :
It can be started with a minimum amount of capital money. Capital money can be substantial(real), assets like land, machinery or intangible form. In case of private limited company and public limited company the capital money required is Rs.1,00,000 or Rs. 5,00,00. Whereas no such necessary capital is required under LLP.
Two Partners Minimum :
LLP requires a minimum of two business partners. It can be varied from 2 or more business partners. There is no such restriction on the maximum number of business partners in contradiction to a private limited company wherein there is a restriction of not having more than 200 partners.
Cost of registration is less :
The cost of registration is low compared to other companies like private and public limited company.
Compulsory audit is not required :
In LLPs, it is not mandatory to audit the accounts.But it is necessary to audit the accounts in the following circumstances
*when LLP exceeds the contribution of Rs.25 Lakhs.or
*when LLP exceeds the annual turnover of Rs.40 Lakhs.