The evolution in the legal structure of a classic partnership firm brought about the greatest single invention of modern times as regards the formats of conducting business are concerned. Not only did the Achilles heel turn around with the inception of the concept of “limited liability partnership” (LLP) but the shortcomings of a partnership firm faded away with the dawn of this hybrid form of business organization which proudly combined the benefits of both partnership firms and companies having features of the likes of separate legal entity, perpetual succession, stability in existence with zero impact of change in partners, so on and so forth.

LLPs proved to be a unique mode of doing business appealing especially to those run by professionals of different specialisations such as accountants, company secretaries, lawyers, etc. resorting to Joint Ventures, Venture Capitals, Small and medium enterprises formats to fulfil their business aspirations. People from different walks of life who had been wanting to tie-up for commercial purposes found this as a perfect way out, one which was needed for quite a long time, one which had the flexibility of a partnership, the flexibility of organizing internal management on the basis of a mutually arrived agreement amongst the partners along with the advantages of limited liability of a company including but not limited to limited liability, all at a low compliance cost.