A Limited Liability Partnership (LLP) is a hybrid business structure that combines the flexibility of a partnership with the limited liability protection of a company. Partners’ personal assets are protected from business liabilities.

Advantages of LLP

• Limited liability protection for partners

• Separate legal entity with perpetual succession

• Flexible internal management through LLP Agreement

• Lower compliance compared to private limited companies

• Better credibility with banks, clients, and vendors

Disadvantages of LLP

• Higher compliance than traditional partnership firms

• Limited options for raising large capital

• Mandatory annual filings and record maintenance