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Limited Liability Partnerships

LLP is one of the most widely recognised vehicle of business around the world. A LLP has characteristics of both that of a Partnership Firm and that of a Limited Liability Company. Formation and regulation of LLP in India is through the Limited Liability Partnership Act, 2008. In a LLP, there is no limitation liability of all the partners. Audit of accounts of LLP is not compulsory upto a specified limit as per the Income Tax Act, 1961. A LLP with the trappings of the character of a company is less regulated and is one of the most preferred modes of business especially in the service Industry. However LLP cannot undertake certain business like Banking, Insurance, Merchant Banking and Market Intermediaries, Telecom etc which can be carried on ONLY by Companies as per the applicable Law. Foreign Direct Investment is not permissible in LLP at present.

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