LLP or Limited Liability Partnership is a type of business organization that gives benefits of limited liability of a company and the flexibility of a partnership. The concept of LLP was introduced in the year 2008-2009 and since then it has become popular among entrepreneurs. It is generally favourable for small and medium-sized enterprises, organizations in the service sector, and professional firms.
The LLP Act 2008 regulates all the LLPs in India. Further, there is a mutual LLP agreement that has to be executed amongst the partners, which defines the rights, roles, responsibilities, and liability of every partner.
Therefore, LLP can be called a corporate business vehicle that enables professional expertise and entrepreneurial initiative to combine and operate in a flexible, innovative, and efficient manner, providing benefits of limited liability while allowing its members the flexibility for organizing their internal structure as a partnership.