GlossaryLimited Liability Partnership
LLPCompany Structure

Limited Liability Partnership

(LLP)

Definition

A hybrid structure combining the flexibility of a partnership with limited liability protection. Taxed at 30% slab rate instead of flat 22%. Lower compliance cost than Pvt Ltd. Cannot issue equity to investors.

Why founders care

Good for service businesses, consultancies, and professional firms that don't plan to raise VC funding. Cannot give ESOPs or issue equity — a major limitation for growth companies.

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