A Limited Liability Partnership (LLP) combines the flexibility of a partnership with the advantages of a company. Governed by the Limited Liability Partnership Act, 2008, LLPs offer benefits like limited liability for partners and a distinct legal identity, along with lower compliance requirements. This makes it a popular choice for professional and service-based businesses such as Chartered Accountants, Management Consultancies, Recruitment Firms, and more.
While LLPs offer numerous advantages, high-growth startups seeking external funding or offering employee stock options (ESOP) may find a Private Limited Company more suitable.
A Limited Liability Partnership (LLP) offers a balanced business structure, combining the flexibility of a partnership with the benefits of a corporate entity. It’s an ideal choice for service-based businesses seeking a separate legal identity, operational efficiency, and cost-effective compliance.
Protects personal assets; liability is limited to partners' contributions.
Clear roles and responsibilities defined by the LLP agreement.
Functions independently, ensuring continuity and ownership of assets.
Minimal regulatory requirements make it cost-efficient.
