The Government of India has enacted the Limited Liability Partnership Act, 2008 (the “ LLP Act” ) which has come into force with effect from January 9, 2009. The Act proposes to introduce Limited Liability Partnerships (LLP) as an alternative corporate vehicle that allows benefits available to a company under the Companies Act, 1956 (“ Companies Act” ) and also allows its members the flexibility of organizing their internal management on mutual agreement as in the case of a partnership firm under the Indian Partnership Act, 1932 (Partnership Act). Set out is a brief description of the key provisions of the LLP Act and brief comparisons with companies under Companies Act and partnerships under the Partnership Act.
Limited Liability Partnership – A new corporate form in India
Updated: Jan 18