What is Limited Liability Partnership (LLP)?
A Limited Liability Partnership (LLP) is a modern business structure introduced in India under the Limited Liability Partnership Act, 2008. It combines the operational flexibility of a traditional partnership with the advantages of limited liability enjoyed by companies.
In an LLP, partners are not personally liable for the wrongful acts of other partners. Each partner's liability is limited to their agreed contribution to the LLP. This makes it an attractive option for professionals like Chartered Accountants, Company Secretaries, Lawyers, and small to medium businesses.
LLP is governed by the LLP Agreement, which defines the rights and duties of partners. It offers perpetual succession, meaning the LLP continues to exist even if partners change.