Limited liability partnership entities, the world wide recognised form of business organization has now been introduced in India byway of LLP Act, 2008. A Limited liability partnership is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities. It therefore exhibits elements of partnership and corporation.

The Limited liability partnership (LLP) is viewed as an alternative corporate business vehicle that provides the benefit of limited liability but allows its members the flexibility of organizing their internal structure as a partnership bases on a mutually arrived agreement. Owing to flexibility in its structure and operation, the LLP would also be a suitable vehicle for small enterprises and for investment buy venture capital.