Limited Liability Partnership

Also called LLP

A limited liability partnership: a structure combining a partnership's flexibility with limited liability for its partners. In India, common for services firms but not for equity-raising startups.

Why it matters

An LLP works for professional and small businesses that do not plan to raise venture money or issue shares. Startups that intend to fundraise choose a private limited company instead, since investors need share capital.

For example

A boutique services firm registers as an LLP for limited liability and flexibility, since it never intends to issue shares or raise funding.

Related terms

Private Limited Company Limited Liability Company Incorporation

Go deeper

See how founders actually handle this on Co-founders, team and legal, part of the Starting Up hub.

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