FinTech Glossary

What Is an LLP

A limited liability partnership (LLP) is a business structure that combines features of a partnership with limited liability protection, where partners are not personally liable for the actions or debts of the partnership beyond their agreed contribution.

Business Context

An LLP offers flexibility in management similar to a traditional partnership while providing liability protection similar to a company.

It is commonly chosen by professional firms, startups, and small businesses seeking a balance between operational simplicity and legal protection.

In India, LLPs are governed by the Limited Liability Partnership Act, 2008.

Key Features of an LLP

An LLP typically includes:

1. Separate legal identity
2. Limited liability for partners
3. Flexible internal management
4. No requirement for minimum capital
5. Perpetual succession

These features make LLPs suitable for knowledge-driven and service-based businesses.