LLP is the Partnership for profit entity that is created by a mutual understanding between two or more parties. It allows fora partnership structure where each partner’s liabilities are limited to the amount they put into the business and these are common in professional business like law firms, accounting firms, and wealth managers.


  • Two or more partners who can run the business as a partnership
  • It has a lesser cost of registration as compared to a Company.
  • No requirement of compulsory Audit.
  • LLP can be started with any amount of minimum capital.
  • Compared to Private Limited Company, the annual ROC compliance in LLP is lesser.
  • Each partner can manage the business if they so desire.


  • Don’t exist in every state
  • It is important to remember that FDI in LLP is allowed only with the prior approval of the Reserve Bank of India (RBI).
  • A limited liability partnership must have at least two members
  • If one member chooses to leave the partnership, the LLP may have to be dissolved.
  • it is required to file an income tax return and MCA annual return each year.
  • LLPs must have a managing partner, but all partners must help run the business