In 2008, a law called the Limited Liability Partnership Act was passed. The main benefit of an LLP is that none of the partners are responsible for the mistakes or bad behaviour of the others. LLP is popular among professionals, micro- and small-sized businesses that are family-owned or closely held. Since LLPs were made legal in India in 2010, more than a million people have signed up for them.
In India, LLP is one of the easiest business types to start up. Since an LLP can’t give out equity shares, a business that wants to raise money through equity shares shouldn’t choose an LLP.