LLP or “Limited Liability Partnership”
Limited Liability Partnership is similar to the concept of limited liability corporation. An LLP gives owners the flexibility of operating as a partnership while having a separate legal identity like a private limited company.
This means that the LLP is seen as a body corporate and has a legal personality separate from its partners. The LLP has perpetual succession, which means any change in the partners of an LLP will not affect its existence, rights or liabilities.
LLP is not deemed to be a legal and separate entity and that its shared profits to be taxed at the individual partner’s level.
LLP is useful for simple partnership between individual partners but not for complex trade or businesses.