What are some key benefits/ reasons of the conversion of partnership firm into a LLP?

  • The liability of the members or the directors are limited in case of LLP whereas in case of partnership firm the liabilities are unlimited
  • The LLP is more transparent structure of business as compared to partnership firm
  • The benefit of startup recognition under the startup India scheme of the government of India can be availed by a LLP and not by any partnership firm.
  • The LLP has a separate legal identity as compared to a partnership firm.
  • The venture capitalist gets attracted to invest in a LLP.