Startups have emerged as the new space for investments as more and more startups seem to rise up every day. It is these startups that are helping the economy grow through the use of tax systems that help the GDP growth. The startups are newer ideas that people want to invest in which were overlooked before. It is rare to see a startup not get invested if it brings to the market something that fills the gap. One needs to target the gap in the market to be able to drive in investments. It has thus become important for the LLP Registrations to be done so that outside funding can be received. 

What is LLP?

LLP refers to the Limited Liability Partnership which is a business method that requires a minimum of two members. It is a company that limits the liability of the members based on the shares they own. It has its own set of advantages such that it provides flexibility to the members and limits the liability risk of each member. Thus protects them from other liabilities. LLP is responsible for its entire asset and the risk to members is limited to their agreed contribution. It can hold contracts on its own and is able to run even when the members change.

How does LLP contribute to Startups?

Startups are businesses that are often built on a partnership where people come together under a similar ideology. Most of the time they are friends, family, or even investors wanting to invest in startups. LLP is member-based and each member is liable for their share of the company. Thus having a startup register will help the members have legal protection. They are liable for their share and don't feel obliged for the liability of the company. It enables the investors to feel safe while investing as they are responsible for what they take responsibility for. It gives them legal protection from the liabilities that the company might face. To register a partnership firm will mean helping the growth of newer ones.

Why are Indian startups shut out?

Global SPAC has shut Indian companies. Even after the Indian finance minister decided to open the market for foreign investment. There have been issues that have hindered the process. Indian startups can expect an influx of about 150 to 200 billion in investment if allowed in the SPAC. The things holding back are the cause of concern such as the creation of shell companies and illegal money laundering. The foreign funding will be heavily checked until the problem is resolved. 

Conclusion

It has become a priority for the government to sort out the issues and look for ways to bring in foreign investment. In doing so it will open the gates for Indian startups to get included in the SPAC. The sooner Indian startups are included in the SPAC the better it will be for the Indian economy.