An LLP is a separate legal entity where the liabilities of partners are only limited only to their agreed contribution. An LLP is established under the Limited Liability Act, 2008 with the Registrar of Companies (ROC). It has features of both the partnership firm and the company. It is ideal for businesses established by partners who want limited liability.

An LLP offers flexibility in management, as partners can decide their roles and responsibilities through an agreement. It also provides credibility and ease of doing business, as it is recognized as a legal entity separate from its partners. Unlike a traditional partnership, the personal assets of partners are protected, making it a preferred choice for professionals and startups.