Limited Liability Partnership

PhD Research Synopsis

TITLE-LIMITED LIBLITY PARTNERSHIP IN INDIA- A COMPERATIVE STUDY

Introduction

Limited Liability Partnership: Globally known as LLP, are recognized separate legal entity having a status similar to that of corporations (company) and a perpetual succession for all commercial and business purposes. LLP is regulated by different countries and jurisdictions as per their local laws, some of the developed countries like US, UK, Canada permits LLP only for accountants and professionals. Further, they also treat LLP as a tax neutral entity or a pass-through vehicle wherein partners pay tax on their relative shares and not the LLP.

We adopted a Limited Liability Partnership Act, 2008 (‘the Act’) on July 7th 2009. The ACT permits a legal structure being LLP for use by entrepreneurs for any business as per the provisions of the Act and the Limited Liability Partnership Rules, 2009 Rules.

Partnership:   Partnership (regulated by Partnership Act, 1932) is one of the preferred business vehicles by entrepreneurs in India.  In-fact, India is one of a country which recognizes partnership as a taxable entity (assessee) under the Income Tax Act, 1961.  Less stringent regulations, low compliance cost, ease, speed and flexibility of the structure are few of the attractions of the Partnership. Unlimited liability of partners, absence of incorporation status and perpetual succession are three significant drawbacks of the Partnership Structure.

1. Structure of an LLP

2. Advantages of LLP Form

3. Status in other countries where this form is available

4. Difference between LLP & “traditional partnership firm”

5. Difference between LLP & Company”

6. Whether the LLP Act is applicable to any specific services like professional services regulated by Statutes?

APPLICABILITY OF THE LLP ACT

1. Likely users/beneficiaries of the LLP Law?

2. Whether an entity which has objectives like “charitable or other not for profit objectives” would be able to set...