An LLP is a hybrid structure combining partnership flexibility with limited liability protection. Partners are not personally liable for the LLP's debts.
LLP vs Private Limited Company
| Feature | LLP | Pvt Ltd |
|---|---|---|
| External Investment | Not eligible for equity | Can raise Angel/VC |
| Annual Compliance | Moderate (Form 8 + 11) | Higher (MGT-7, AOC-4) |
| Tax Rate | 30% flat | 22%/15% corporate |
| Best For | Professional services | Startups, tech, manufacturers |