The Limited liability Partnership (LLP) was introduced by Parliament of India vide Limited Liability Partnership Act, 2008 to govern LLP business in India. The LLP is a Partnership registered under the Act. The LLP is a separate legal entity and it is completely liable for its assets. In LLP the liability of the partners is limited to their contribution in the business. Thus, the creditors of the limited liability partnership are not the creditors of individual partners.
The advantage of forming an LLP is that the formation is simple. The partners of LLP are not liable to pay the debts of their company from their personal assets. The death, retirement or insolvency of the partners will not affect the life of LLP. It could be winded as per the Provisional act of 2008. A Limited Liability Partnership can be formed to carry a lawful business on a view to earning a profit and cannot be formed for charitable or non-profit purposes.