A Limited Liability Partnership (LLP) is a business entity that offers the benefits of limited liability of a company and the flexibility of a partnership. This hybrid structure is governed by the Limited Liability Partnership Act, 2008.

Unlike a traditional partnership, an LLP provides legal protection to its partners by limiting their liability to their capital contribution. This means that a partner is not personally liable for the misdeeds or negligence of another partner.

This structure is highly preferred by professionals, service providers, and small businesses due to its minimal compliance requirements, lower cost of formation, and ease of management compared to a Private Limited Company. It is an excellent choice for businesses that do not plan to raise large amounts of equity funding from investors.