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 is popular among entrepreneurs since its introduction in the year 2008-09. It is generally favorable for small and medium-sized enterprises, organizations in the service sector, and professional firms.
The LLP Act 2008 regulates all the LLPs in India. Furthermore, the partners must execute a mutual LLP agreement that defines the rights, roles, responsibilities, and liability of each partner.
Therefore, we can call LLP a corporate business vehicle that enables the combination and operation of professional expertise and entrepreneurial initiative in a flexible, innovative, and efficient manner, providing the benefits of limited liability while allowing its members the flexibility to organize their internal structure as a partnership.