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ALimited Liability Partnership (LLP) is almost same as general partnership and is guided by the Limited Partnership Act, 2008. In LLP, there are two classes of partners – general partners and limited partners. General partners hold control over the management and partnership of the business and also accept complete responsibility over the business administration. On the other side, limited partners hold no personal responsibility over business decisions but just invest in business. They do not participate in daily business operations. General partners in a LLP can either be an individual or a corporation.

According to the Limited Partnership Act, 2008, a LLP is a separate legal entity which means partners are different from each other. A LLP is easy to form and has low cost of formation. It requires just two partners to begin an LLP, but have no limitation for the maximum number of partners. There is also no minimum capital contribution required. In a LLP, the partners are not legally accountable for the acts of each other while every partner will be responsible for his on deeds. In caparison to companies, LLPs have less government restrictions and do not have to file yearly taxes as businesses. However, each partner will have to file different tax forms related to the businesses.

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