Limited Liability Partnership - A New Dimension of Business

Abstract

Limited Liability Partnership (LLP) is s new business concept which will try to minimise the gap between partnership business and limited liability companies formed by the companies act. There exists different steps for incorporation of LLP and these steps are quite simple. LLP combines the advantages of partnership business and company but still it has some differences with partnership business and company. Different countries as UK, USA, Australia, Singapore, Japan have already accepted this limited liability partnership concept.

In India the need for LLP legislation gained momentum with the submission of 2nd Naresh Chandra Committee's report on 2nd July, 2005.The Limited Liability Partnership Act 2008 was published in the Indian official Gazette on January 9, 2009 and has been notified with effect from 31st March 2009. The concept of LLP is very promising for Indian business environment.