Overview
What is a Limited Liability Partnership?
A Limited Liability Partnership (LLP) is a modern, flexible business structure that combines the operational simplicity of a traditional partnership with the liability protection of a company. Governed by the Limited Liability Partnership Act, 2008 and regulated by the Ministry of Corporate Affairs (MCA), an LLP is a separate legal entity distinct from its partners — capable of owning property, entering contracts, opening bank accounts, and initiating or defending legal proceedings entirely in its own name.
Unlike a general partnership, partners in an LLP are not personally liable for the wrongful acts or negligence of other partners, nor for the LLP's debts beyond their agreed contribution. This makes the LLP structure particularly well-suited for professional service firms, consultancies, law firms, architects, and small-to-mid-size businesses seeking a cost-effective yet compliant entity.
Every LLP must have a minimum of 2 designated partners, with at least one being an Indian resident. There is no upper limit on the number of partners, and unlike a Private Limited Company, there is no mandatory statutory audit unless annual turnover exceeds ₹40 lakhs or contribution exceeds ₹25 lakhs.
There is no minimum capital contribution requirement for forming an LLP, making it an accessible and economical option for new businesses and professional practices across India.
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