What is an Example of an LLP? Meaning, Structure, and Real-Life Cases
What is an Example of an LLP? Meaning, Structure, and Real-Life Cases
In today’s evolving business landscape, entrepreneurs are looking for flexible structures that combine the benefits of partnerships and companies. One such structure is LLP – Limited Liability Partnership. But what exactly is an LLP, and what are some real-life examples of LLPs in India?
Let’s dive deep to understand how LLPs work and explore examples that make the concept crystal clear.
📌 What is an LLP?
A Limited Liability Partnership (LLP) is a hybrid legal structure that blends elements of a traditional partnership with those of a company. It was introduced in India through the LLP Act, 2008. The key advantage of an LLP is that it provides limited liability to its partners, meaning the personal assets of partners are protected in case of business losses.
✅ Key Features:
• Separate Legal Entity: An LLP can own assets and incur liabilities in its name.
• Limited Liability: Each partner’s liability is limited to their agreed contribution.
• Flexible Internal Structure: LLPs offer operational flexibility through a mutually agreed partnership agreement.
• No Requirement for Minimum Capital: You can start with even ₹1 as capital.
• Perpetual Succession: The existence of an LLP is not affected by the death or exit of partners.
🧾 Example of LLP – Real-Life LLPs in India
Let’s now take a look at actual LLPs in India to better understand how this structure works in the real world.
1. Infosys BPM Limited Liability Partnership
Infosys BPM, a subsidiary of Infosys Limited, operates some of its consulting services under the LLP model. It allows them to streamline back-end processes with greater legal flexibility and efficiency.
2. Lakme Lever LLP
Lakme, one of India’s most popular beauty brands (part of Hindustan Unilever), has a salon franchise business run under Lakme Lever LLP. This LLP model is used to manage franchisee partnerships with professionals across India, offering flexibility and protection to both parties.
3. Ernst & Young LLP (EY India)
One of the Big 4 auditing and consulting firms, Ernst & Young, operates as an LLP in India. Given the nature of professional services, LLP offers them risk protection and the right legal structure for such large-scale consulting operations.
4. Tata SIA Airlines Limited (Vistara) – LLP Stakeholders
Although the airline itself is a company, many backend service providers, including ground handling and consultancy firms working with them, operate under LLPs. This structure helps maintain compliance, taxation efficiency, and operational simplicity.
💡 Why Do Businesses Choose LLPs?
Many service-based firms like law firms, architecture studios, marketing consultancies, and chartered accountancy practices choose LLP because:
• They don’t need large capital to start.
• LLPs offer tax advantages over private limited companies (e.g., no Dividend Distribution Tax).
• Partners are shielded from each other’s liabilities.
• Compliance cost is relatively lower than a private limited company.
⚖️ Use Case: LLP vs Private Limited Company
| Feature | LLP | Private Limited Company |
| Liability | Limited | Limited |
| Compliance | Low | High |
| Ownership | Partners | Shareholders |
| Suitable For | Professionals & SMEs | Startups & Fundraising |
🏁 Conclusion
A Limited Liability Partnership is a smart choice for professionals and small business owners who want to enjoy the benefits of limited liability without the strict compliance of a company. Whether you're starting a consultancy, franchise model, or service-based business, LLP gives you legal protection, tax efficiency, and operational ease.
By looking at real examples like Lakme Lever LLP or Ernst & Young LLP, it's clear that LLPs are not just theoretical options—they’re powerful tools used by big and small businesses alike.
