A limited liability partnership is a partnership consisting of partners whose liability is limited to the capital invested by each for starting the business. In an LLP, your personal property is not liable for the firm’s debts. Moreover, an LLP is a corporate body having a legal entity independent of the partners who are a part of the organization.
The Limited Liability Partnership (LLP) integrates the ease of running a Partnership along with the separate legal entity status and limited liability aspects of a company. What’s more, is that such an entity has minimal compliance requirements and need not conduct an external audit of its books until it has a turnover of Rs. 40 lakh per year or a paid-up capital contribution of Rs. 25 lakh.