An LLP (Limited Liability Partnership) is a business structure that combines the flexibility of a partnership with the limited liability of a company, so each partner is shielded from the debts and the misconduct of the other partners. In India it is a separate legal entity governed by the LLP Act, 2008 and registered with the Ministry of Corporate Affairs.
How an LLP works
Partners run the business directly, but the entity — not the individuals — carries the liability.
An Indian LLP has perpetual succession and can own assets, sign contracts, and sue or be sued in its own name. Internal rules — profit shares, roles, and decision-making — are set by an LLP agreement between the partners rather than by rigid company law, which makes it lighter to operate than a Private Limited company. It needs at least two partners and two designated partners, and at least one designated partner must be resident in India.
Why it matters for a global or India-based founder
An LLP is often the cheapest compliant way for a small Indian team to hold a real, registered entity.
Compared with a Private Limited company, an LLP has lighter annual compliance and no mandatory audit until it crosses turnover or capital thresholds, which suits founders, freelancers, and small service firms. The trade-off is that it is not the structure most equity investors want — VCs and ESOP plans generally need a Private Limited company, so growth-stage fundraising usually means converting.
Separate legal entity with limited liability for every partner.
Needs at least two partners; one designated partner must be India-resident.
Lighter compliance and no audit until turnover or contribution thresholds are crossed.
Good for bootstrapped teams; convert to Pvt Ltd when you raise equity.
Where it fits with StableCorp
StableCorp forms Indian LLPs (and Indian Pvt Ltd companies), and can also onboard an entity you already have. For a small Indian team getting paid in USDC by US clients, the LLP holds the contracts while the stablecoins off-ramp to INR through proper RBI purpose codes — a compliant rail with a real paper trail, not the grey-area direct-wallet route. If your clients are US-based, see how to receive USDC payments from US clients and the FEMA and RBI rules for receiving USDC in India, or check pricing.
This is general information, not legal or tax advice.
Sources
Ministry of Corporate Affairs — Limited Liability Partnership (LLP) — https://www.mca.gov.in/content/mca/global/en/mca/master-data/limited-liability-partnership.html
The Limited Liability Partnership Act, 2008 (India Code) — https://www.indiacode.nic.in/handle/123456789/2009