While LLP has been a popular
form of organization adopted by professionals, particularly
lawyers, accountants and architects, internationally, GOI has
as late as 2006 recognized the necessity to implement a
regulatory framework to establish LLPs in India.
The LLP Bill, 2006 currently
pending before the Parliament, if passed, would be a dynamic
step towards the establishment, in India, of an alternative
corporate business vehicle for multi-disciplinary partnerships
incorporating the advantage of members' limited liability
coupled with flexibility in the arrangement of their internal
organizational structures, based on mutual agreements, and
constituting a hybrid between a limited liability company and a
The Bill would incorporate
provisions (inter alia) for incorporation of LLPs as body
corporate with a separate legal entity, liability of members
proportionate to their contributions, liability of the
The Bill may serve to exploit
the growth potential of the service sector and afford the much-
needed flexibility to small enterprises to participate in joint
ventures and agreements, thereby enabling them to access
technology and bring together business synergies. Large number
of professional partnerships would be provided a platform for a
wide range of business activities to garner greater resources
and talent, face competition from multinational firms including
foreign law firms (their entry is expected within a legal
framework which is presently under process) and participate in
the process of globalization in a meaningful manner.
The content of this article is intended to provide a
general guide to the subject matter. Specialist advice should
be sought about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The Ministry of Corporate Affairs notified on June 5, 2015 that certain provisions of the Companies Act, 2013 shall not apply to private limited companies or shall apply with such exceptions or modifications as directed in the notification.
Whilst trade and barter have existed since early times, the modern practice of forming business relationships through the means of contract has come into existence only since the industrial revolution in the West.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).