Indian Limited Liability Partnership Law: Some Concepts and Concerns

Abstract

India recently enacted its first law on limited liability partnership law. It has been over a year that the LLP Act, 2008 has been in force. Contrary to expectations at the time of its enactment, there haven't been too many takers of this form of business organization. There appear to be two important reasons, viz. (a) confusion in the understanding of some of the basic concepts of this form of orgamization, leaving much scope for uncertainty; and, (b) the failure of the law to address some important concerns.

And, yet, the authors are confident about the advantages of this new form of business organization. This paper in an attempt to higlight some of the advantages that this form has to offer to the businesses. If structured appropriately, a business can gain substantial from this form.

Keywords: LLP, limited liability partnership, advantages, concerns, LLP Act, liability of partners, conversion of companies into LLP

JEL Classification: K2, K3, K4