A Limited Liability Partnership (LLP) is a type of business structure that combines features of both partnerships and corporations. It provides limited liability protection to its partners while allowing them to actively participate in the management of the business. Here are some key characteristics and aspects of Limited Liability Partnerships:

Limited Liability: One of the primary benefits of an LLP is that it offers limited liability protection to its partners. This means that the personal assets of the partners are protected from the debts, liabilities, and obligations of the LLP. The liability of each partner is limited to their agreed contribution to the LLP.

Separate Legal Entity: An LLP is a separate legal entity distinct from its partners. It can enter into contracts, own assets, incur debts, and sue or be sued in its own name. The partners are not personally liable for the actions or debts of the LLP.

Formation: An LLP is formed by registering with the Registrar of Companies (ROC) under the Limited Liability Partnership Act, 2008. The LLP agreement, which outlines the rights, duties, and obligations of the partners and the LLP, must be filed along with the registration documents.

Number of Partners: An LLP must have a minimum of two partners, and there is no maximum limit on the number of partners. Unlike traditional partnerships, LLPs can include corporate entities as partners.

Management: In an LLP, partners have the flexibility to actively participate in the management of the business without risking unlimited personal liability. The management structure and decision-making processes can be defined in the LLP agreement.

Taxation: LLPs are taxed as separate legal entities, similar to companies. However, unlike companies, LLPs do not pay dividend distribution tax. Instead, the profits of the LLP are taxed in the hands of the partners, similar to partnership firms.