Limited Liability Partnership (LLP) Act, 2008
Limited Liability Partnerships are hybrid entities combining the flexibility of a partnership with the limited liability protection of a company. Introduced through the LLP Act, 2008, they are especially popular among professional service firms (chartered accountants, lawyers, consultants) and startups. Unlike companies, LLPs are not required to hold annual general meetings or maintain most formal compliance requirements.
- LLPs are governed by the LLP Act, 2008 and regulated by the Ministry of Corporate Affairs.
- As of 2025, India has over 3 lakh registered LLPs, making it one of the most popular business structures for professionals.
- An LLP has two or more designated partners (at least one must be an Indian resident), and partners' liability is limited to their agreed contribution.
- Existing procedural penalties for LLPs were disproportionately harsh relative to the scale of many LLP operations; the 2026 Amendment rationalises this.
● Tracked since March 23, 2026 · last seen March 27, 2026 · updates as the daily brief publishes
See it in today’s brief.
Daily current affairs with every static concept explained in place.
Read the daily brief