Limited Liability Partnership (LLP) introduced in 2008 is a prominent legal business structure in India having fewer legal compliances, as the name suggests LLP limits the liability of its partners & lends protection from the incompetence or misdeeds of the other partners. LLP is one of the simplest forms of business to incorporate and manage in India.

Also, LLP is less expensive to incorporate and maintain than a Private Limited Company & serves as a better option from a tax perspective.

Due to the simple incorporation procedure and lesser compliance formalities, LLP is preferred by Professionals, Medium and Small businesses. LLPs are incapable of issuing equity shares, It should thus, not be be used for any business that requires raising equity funds during its existence.