Nowadays, day's entrepreneurs are opting for Limited Liability Partnership for doing business due to its special positive features. Limited Liability Partnership (LLP) is a separate legal entity in which an investor's liability is limited to the amount of investment in the LLP.
It is a combination of partnership and corporate, having flexibility and tax status of partnership while having status of body corporate. Being a separate legislation, the provisions of the Indian Partnership Act, 1932 are not applicable to LLP. It is governed/managed as per LLP agreement and registered under Limited Liability Partnership Act, 2008 and the rules made there under. LLP partners do not receive dividend, but are entitled to receive income/profits as per the LLP Agreement.