Limited Liability Partnerships in India
29 Pages Posted: 3 Nov 2008
Date Written: January 1, 2007
Limited Liability Partnerships (LLPs) are commercial vehicles which combine features of partnership and company. In law, partners bear unlimited liability even for the acts of other partners. An LLP enables the partners to limit their liability in this regard just like a shareholder in a company. However, it still retains a 'pass through structure' for tax liability which is available for partnerships. The reduction of risk by limited liability encourages business vehicles like firms of professionals (lawyers, accountants etc.) to grow in size.
India is soon introducing a legislation permitting firms to operate as LLPs. The present article seeks to provide a background to the concept of LLP and examine the features of the proposed Indian LLP Model.
Keywords: company, India, LLP, limited liability, limited liability, partnership, partnership, company,
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