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The concept of Limited Liability Partnerships (hereinafter called LLP), new commercial vehicle floated to address the vacuum that existed between partnership law and company law. LLP is a marriage of principles of company law and partnership law in order to address the deficiencies in both the areas for small scale business and professional firms. The present Work attempts a deeper understanding of the basic concepts underlying LLP and the way in which company and partnership has been fused to produce this new entity. The Limited Liability Partnership (LLP) is viewed as an alternative corporate business vehicle that provides the benefits of limited liability but allows its partners the flexibility of organising their internal structure as a partnership based on a mutually arrived agreement.