PROJECT ON–

“LIMITED LIABILITY PARTNERSHIP IN INDIA”

SUBMITTED BY – SUBMITTED TO –
JAYANT RAWAT ONGC
SEMESTER 6TH (III YEAR) CORPORATE LEGAL DEPARTMENT
AMITY LAW SCHOOL, NOIDA.

Page 1 of 18
 TABLE OF CONTENTS

Introduction 3

Limited Liability Partnership in India4

Difference between LLP and other business entities 6

International Experiences with the LLPs 9

Liability of Partners 11

Some Concerns 12

Advantages of the LLP Form 15

Disadvantages of the LLP Form 16

Conclusion 17

Bibliography 18

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 INTRODUCTION
A Limited Liability Partnership (LLP) is a form of business entity which permits individual
partners to be shielded from joint liability created by another partner’s business decision or
misconduct. In an increasingly litigious market environment, the prospect of being a member of
a partnership firm with unlimited personal liability is, to say the least, risky and unattractive.
Indeed, this is the chief reason why partnership firms of professionals, such as accountants, have
not grown in size to successfully meet the challenge posed today by international competition.
This makes an LLP a most suitable vehicle for partnerships among professionals such as lawyers
and accountants. An LLP enters into contracts in its own name in the same way as a limited
company, but its members have the advantage of limited liability similar to the shareholders of a
company. Thus, in the event of a business failure or a tortuous complex of disputes and claims,
the liability would be limited to the partner responsible. There would be no recourse to attach the
personal assets of the other members, except the member who was personally responsible to
negligent. Similarly, a partner’s liability is not limited when the misconduct takes place under his
supervision or control. In other words, an LLP only protects a partner from liability arising from
the incorrect decision or misconduct of other partners or any of its employees not under his
control. The partnership is not relieved of the liability of its other obligations as a partnership.

According to the Indian Partnership Act, 1932, a 'Partnership' is the relation between persons
who have agreed to share the profit of a business, carried on by all, or any of them acting for all.
Persons, who have entered into a partnership are, individually, called partners and collectively,
called a firm. The name, under which the business is carried on, is called the name of the firm.

A corporate business vehicle that enables professional expertise and entrepreneurial initiative to
combine and operate in flexible, innovative and efficient manner, providing benefits of limited
liability while allowing its members the flexibility for organizing their internal structure as a
partnership.

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 LIMITED LIABILITY PARTNERSHIP IN INDIA
India has witnessed considerable growth in the recent years and the quality of our entrepreneurs,
and technical and professional man power has been acknowledged globally 1. Therefore, the need
to combine the entrepreneurship knowledge and risk capital to provide a further impetus to our
impressive economic growth was considered.

After globalization, Indian professionals are able to serve worldwide. They cannot serve in form
of company because of professional restrictions. They hesitate to form partnership due to number
of aforesaid reasons. Abid Hussain Committee has recommended legislation on LLP as old as in
1997. Later on Naresh Chandra Committee in 2003 and J.J.Irani Expert Committee on Company
Law in 2005 also supported this view.2

The J.J.Irani Committee said that LLP would be a suitable vehicle for partnership among
professionals who are already regulated such as company secretaries, chartered accountants, cost
accountants, lawyers, architects, engineers, doctors etc.

The Naresh Chandra Committee on “Regulation of Small Companies and Partnership” was
constituted by the Government of India under the Ministry of Finance and Company Affairs and
the Department of Company Affairs on 10th January 2003 to “suggest a scientific and rational
regulatory environment, the hallmark of which is the quality, rather than the quantity, of
regulation”.3 Chaired by Mr. Naresh Chandra and had 8 members & the Institute of Chartered
Accountants of India providing secretarial help.

The Committee dealt with reforms in Company Act and Indian Partnership Act. The
recommendation of Naresh Chandra Committee for Limited Liability Partnership in India is a
step further to modernization and recognizing the needs of changing times. 4 The government has
accepted the recommendations with applause.

Main features of an LLP in India are as follows:

1
patanjaliassociates.com/uploaded_files/news/1250663590.pdf.
2
Limited Liability Partnership by Krutesh Patel available at http://www.caclubindia.com/articles/limitedliability-
partnership-4158.asp.
3
Government order No.11/3/2003-CL.V passed by the Government of India dated 10th January 2003.
4
“Limited Liability Partnership in India- A Critical analysis of the Naresh Chandra Committee Report on
‘Regulation of Small Companies and Partnership” ‘by Prashanth S.J available at www.indlaw.com/display.aspx?
41CA374E-CC62-4453-A14E.

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  LLP is a separate legal entity separate from its partners, can own assets in its name, sue
and be sued.
 Unlike corporate shareholders, the partners have the right to manage the business directly
 One partner is not responsible or liable for another partner’s misconduct or negligence.
 Minimum of 2 partners and no maximum.
 Should be ‘for profit’ business.
 Perpetual succession.
 The rights and duties of partners in LLP, will be governed by the agreement between
partners and the partners have the flexibility to devise the agreement as per their choice.
The duties and obligations of Designated Partners shall be as provided in the law.
 Liability of the partners is limited to the extent of his contribution in the LLP. No
exposure of personal assets of the partner, except in cases of fraud.
 LLP shall maintain annual accounts. However, audit of the accounts is required only if
the contribution exceeds Rs. 25 lakhs or annual turnover exceeds Rs.40 lakhs.

Formation of a Limited Liability Partnership under the LLP Act5:

Every LLP is required to register with the Registrar of Companies (“Registrar”) by filing its
incorporation document with the Registrar of the State in which the registered office of the LLP
is to be situated.

The incorporation document, in addition to other information, shall state the names and
addresses of the partners of the LLP as well as names and addresses of the designated partners.
The LLP Act provides that a LLP formed under its provisions shall be a body corporate having a
legal entity separate from that of its partners, and will have perpetual succession.

The LLP Act provides that [one or more] provisions of the [Indian] Companies Act, 1956 may
be made applicable to LLPs formed under the LLP Act, with or without modification, as the
Central Government of India may notify from time to time.6

5
A monthly tally of 32 retail chains' sales found a 12th straight year-over-year decline in August 2009.
http://www.nytimes.com/aponline/2009/09/03/business/AP-US-Retail-Sales-Summary.html.
6
LLP Act Section 67(1).

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 DIFFERENCE BETWEEN LLP AND OTHER BUSINESS ENTITIES

Features Partnership firm Company Limited Liability

Partnership
Cost of formation The cost of formation Minimum statutory The cost of formation
is negligible fee for incorporation is statutory filing
of private company is fees, comparatively
Rs 6,000/- and lesser than the cost of
minimum statutory formation of
fee for incorporation company.
of public company is
Rs. 19,000/-
Registration Not compulsory Compulsory Compulsory
registration required registration required
with the ROC. with the ROC.
Name No guidelines Name of public ‘LLP’/Limited
company to the end liability partnership
with the word required to be
‘limited’ and a suffixed to the name
private company with
the words ‘private
limited’

Liability Unlimited can extent Limited to the extent Limited to the extent
to the personal assets of unpaid capital. of contribution to the
of the partners. LLP.
Legal entity status Not a separate legal Is a separate legal Is a separate legal
Entity Entity entity
No. of Minimum 2 and Minimum of 2 for Minimum no. of
shareholders/partners maximum 20 private company and partners is 2 and
partners maximum is 50 maximum limit is not

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 shareholders. There specified
is no maximum
limit for the public
company
Incorporation Partnership deed Memorandum of An agreement
document between the partners association and between the partners
Articles of of the LLP or
association is between the LLP and
required partners.
Taxability The income tax at The income is taxed The income is taxed
30%. In addition to at 33.99. in addition at 30.9% in addition
the tax; education to the tax and to education cess as
cess as applicable education cess as applicable would be
would be levied. applicable levied.
Capital contribution Not specified Private company Not specified
should have a
minimum paid up
capital of Rs. 1. lakh.
and for a public
company the limit is
5 lakh.
Foreign national as Foreign national Foreign national can Foreign nationals can
shareholder/ partners cannot form be a shareholders be partners.
Partnership firm
Dissolution By agreement of the Very procedural. Less procedural
partners. Insolvency Voluntary, or by compared to
or by court order order of company company. Voluntary
law tribunal or by order of
national company law
tribunal.
Annual returns No returns to be filed Annual account and Annual statements of
with the registrar of annual returns filed accounts and
the firm with the ROC insolvency & annual

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 return has to be filed
with ROC
Whistle blowing No such provision No such provision Protection provided
to employees and
partners who provide
useful information
during the
investigation process.
Management By Partners By Board of directors By Designated
partner/partners
Governance The Indian The Companies Act, The LLP Act, 2008
Partnership Act, 1932 2013
Common seal No Yes Yes
Minimum No. of Designated Partners At least 2 Directors. Designated Partners
director/ Designated there is no concept of Citizen need not be at least two. One be
partners DPs/Directors Indian. Directors an Indian and must
must have DIN have DPIN

INTERNATIONAL EXPERIENCES WITH THE LLPS

The hybrid entities like Limited Liability Partnership are prevalent across the globe. Before
being introduced in India it has been accepted in countries like U.S.A, U.K, Australia, and
Germany. This structure is recognized as the “world’s best practice” structure, designed to not
only attract venture capital from offshore institutional investors but also to retain domestic
investment. They are commonly used by Private Equity/Venture Capital Funds and
professionals. In countries like the United States (some states), Canada, Germany, Poland and
China, LLPs can be formed only by professional service providers. Good results with the LLPs
in those countries have again encouraged Indian government to introduce LLP module in India
also.

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 In the United States of America, each individual state has its own law governing the
formation of Limited Liability Partnerships. The concept of LLP originated in 1991,
through the Texas Statute. It is now adopted by almost every state in the US. Over forty
had adopted LLP statutes by the time LLPs were added to the Uniform Partnership Act in
1996. Other “hybrid” entities include Limited Partnerships and Limited Liability
Companies. In the United Kingdom, LLPs are governed by the LLP Act, 2000.
Although found in many business fields, the LLP is an especially popular form of
organization among professionals, particularly lawyers, accountants, and architects. In
some U.S. states, namely California, New York, Oregon, and Nevada, LLPs can only be
formed for such professional uses.
Although specific rules vary from state to state, all states have passed variations of the
Revised Uniform Partnership Act. The liability of the partners varies from state to state.
Section 306(c) of the Revised Uniform Partnership Act (1997) (RUPA) (a standard
statute adopted by a majority of the states) grants LLPs a form of limited liability similar
to that of a corporation.
An obligation of a partnership incurred while the partnership is a limited liability
partnership, whether arising in contract, tort, or otherwise, is solely the obligation of the
partnership. A partner is not personally liable, directly or indirectly, by way of
contribution or otherwise, for such an obligation solely by reason of being or so acting as
a partner. However, a sizable minority of states only extend such protection against
negligence claims, meaning that partners in an LLP can be personally liable for contract
and intentional tort claims brought against the LLP. While Tennessee and West Virginia
have otherwise adopted RUPA, their respective adoptions of Section 306 depart from the
uniform language, and only a partial liability shield is provided.
 In Singapore, LLPs are governed by the LLP Act, 2005, which is similar to the UK
legislation. This legislation draws on both the US and UK models of LLP, and like the
latter establishes the LLP as a body corporate. However for tax purposes it is treated like
a general partnership, so that the partners rather than the partnership are subject to tax
(tax transparency).
 In UK, the LLPs are governed by the Limited Liability Partnerships Act 2000 (in Great
Britain) and the Limited Liability Partnerships Act (Northern Ireland) 2002 in Northern

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 Ireland. A UK limited liability partnership is a corporate body - that is to say, it has a
continuing legal existence independent of its members, as compared to a Partnership
which may (in England and Wales, does not) have a legal existence dependent upon its
membership. The Limited Liability Partnerships Act 2000 (“the LLP Act”) and the
Limited Liability Partnerships Regulations 2001 (“the LLP Regulations”) came into force
on 6th April 2001. The scheme of the LLP legislation is that the LLP Act itself creates
the new entity and sets out its core principles, with the LLP Regulations applying – with
modifications – particular parts of the Companies Act 1985, the Insolvency Act 1986 and
the Company Directors Disqualification Act 1986 to the entity and its members.
 In Japan, the limited liability partnerships were introduced to Japan in 2006 during a
large-scale revamp of the country's laws governing business organizations. Japanese
LLPs may be formed for any purpose (although the purpose must be clearly stated in the
partnership agreement and cannot be general), have full limited liability and are treated as
pass-through entities for tax purposes. However, each partner in an LLP must take an
active role in the business, so the model is more suitable for joint ventures and small
businesses than for companies in which investors plan to take passive roles. A Japanese
LLP is not a corporation, but rather exists as a contractual relationship between the
partners, similarly to an American LLP. Japan also has a type of corporation with a
partnership-styled internal structure, called a godokaisha, which is closer in form to a
British LLP or American limited liability company.

LIABILITY OF PARTNERS
Nature & extent of liability of a partner of an LLP

Every partner of an LLP would be, for the purpose of the business of the LLP, an agent of the
LLP but not of the other partners. Liability of partners shall be limited except in case of
unauthorized acts, fraud and negligence. But a partner shall not be personally liable for the
wrongful acts or omission of any other partner. An obligation of the limited liability partnership
whether arising in contract or otherwise, is solely the obligation of the limited liability
partnership. The liabilities of LLP shall be met out of the property of the LLP.

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The Act provides for the minimum of two partners to carry on LLP. If at any time the number of
partners of a limited liability partnership is reduced below two and the limited liability
partnership carries on business for more than six months while the number is so reduced, the
person, who is the only partner of the limited liability partnership during the time that it so
carries on business after those six months and has the knowledge of the fact that it is carrying on
business with him alone, shall be liable personally for the obligations of the limited liability
partnership incurred during that period.

The Act provides that any person (not being a partner in any LLP), who by words spoken or
written or by conduct, represents himself, or knowingly permits himself to be represented to be a
partner in a LLP (known as ‘partner by Holding out’) is liable to any person who has on the faith
of any such representation given credit to the LLP, whether the person representing himself or
represented to be a partner does or does not know that the representation has reached the person
so giving credit.

It has further been provided that where any credit is received by the LLP as a result of such
representation, the LLP shall, without prejudice to the liability of the person so representing
himself or represented to be a partner, be liable to the extent of credit received by it or any
financial benefit derived thereon.

The provisions have also been made in the Act to provide that where after a partner's death the
business is continued in the same LLP name, the continued use of that name or of the deceased
partner's name as a part thereof shall not of itself make his legal representative or his estate liable
for any act of the LLP done after his death.

Penal action on errant partners who are not residents of India will be taken

For statutory compliances provisions of at least one resident designated partner (DP)in every
LLP is would ensure that at least one partner is available in India for at least sixmonths for
regulatory compliance requirements. The LLPs would have freedom to appointmore than one
resident as DP. LLP as an entity would always remain liable for regulatory orother compliances.
Civil liability on such a partner would be adjudicated by the courts undercivil law which
recognises ‘foreign awards’. Criminal liability would require adjudication/enforcement by the

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courts including using the extradition process. Position would be similarto the cases of directors
of companies who are foreign nationals.

SOME CONCERNS

 There are in this Act, just as any other law, certain issues that need to be addressed in
order for the LLP regime to take its full colour. Pending this, there remains some
ambiguity as to what actually lies in store. For some of the issues, one may draw
persuasion from the legal position in other countries and proceed on assumptions; but
there are other more vital ones where the law must be clarified before one would wish to
tread.
 The Act permits an Indian LLP to have foreign partners. Of course, in order to be
admitted, the foreign partner would be required to bring his contribution. However, as of
now, no corresponding changes have been made in the Foreign Exchange Management
Act, 1999 and delegated legislations made thereunder, which continue to allow only a
“company” to being foreign direct investment into India. The further requirement that
foreign investment may be brought into India only through an issue of shares adds a
further impediment in any effective and meaningful realization of this provision of the
Act that enables foreign residents also to be partners in an Indian LLP. This is being
viewed as a very serious lacuna in the present state of the law. It has put a number of
foreign restructuring assignments to a halt since foreign investors wish to wait and watch
the reaction of the government at this front.
 One of the acclaimed objectives for enacting the LLP law in India is to bypass the
hindrance to growth of general partnerships in India owing to a cap of “twenty” persons
who may associate themselves as partners in a partnership firm. This restriction is,
however, not laid down by the Partnership Act, 1932 but by Section 11 of the Companies
Act, 1956. The Act, however, does not expressly provide that Section 11 of the
Companies Act does not apply to LLPs, though it also does not expressly import that
restriction either. The silence of the Act on this point is being widely seen as a legislative
acquiescence to bracket together more than twenty partners in an LLP. There does not
seem to be any precise legal basis to say so. However, keeping into consideration, the
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 objects of enacting the LLP law in India, the courts would, more likely than not, permit
more than twenty partners by employing principles like the Heydon’s rule of
interpretation and purposive interpretation. The matter is however open to some debate.
 The Union Budget 2009 has provided for the taxation of the LLPs. Prior to the budget,
there was some ambiguity as to whether India would, in line with the practice worldwide,
treat an LLP as a fiscal transparency and tax the profits in the hands of the partners; or,
she would accord an LLP the same tax treatment as accorded to a general partnership
under the Partnership Act, 1932.
 India has opted for the second option, i.e., to treat an LLP at par with a general
partnership, so far as the tax treatment is concerned. In India, an LLP, thus, is not a fiscal
transparency or pass through entity, as it is sometimes called.
 The definitions of the terms “firm”, “partner” and “partnership” under Section 2(23) of
the Income-tax Act have been amended to include an LLP, a partner in a LLP and LLP
respectively. Accordingly, all the provisions relating to taxation of traditional partnership
firms would apply mutatis mutandis to LLPs. This means that income-tax would be
levied on the profits of the LLP and such profits would be taxable in the hands of the LLP
itself. Profits flowing from the LLP to the individual partners would not be includible in
computing the total income of the partners liable to tax in terms of the provisions of
Section 10 of the Income-tax Act, 1961.
 This tax treatment has however caused some unrest to potential foreign investors who
would now be exposed to double taxation in respect of income arising from an LLP
incorporated in India since profits would be liable to tax in the hands of the LLP in India
and when the profits are distributed to the partners, such profits would be liable to tax in
the respective jurisdiction where the partner is resident. This situation is not even
addressed by the double taxation avoidance agreements entered into by India with other
countries.
 However, when judged against a company, an LLP is taxed only at one, and not both,
levels (except, may be, in cases of foreign partners). LLPs are also not liable to the 10%
surcharge leviable on companies. This means that the businesses would not have to share
a big chunk of its money with the government. This is a formidable incentive. Nobody,
after all, minds a few extra dollars.

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  The Union Budget also tried to do away with the ambiguity as to the taxability or
otherwise of conversion of an existing entity into an LLP by providing that the
conversion from a general partnership firm to an LLP will have no tax implications if
rights and obligations of the partners remain the same after conversion and if there is no
transfer of any assets or liability after conversion. This endorses the premise that
conversion of an existing entity into an LLP does not involve any transfer but a mere
internal reorganization taking place as a result of operation of law. However, there
continues to be serious ambiguity as far as the unlisted companies are concerned,
particularly considering that the Government is not willing to allow tax free conversion
of unlisted companies into LLPs.
 In matters arising under Part IX of the Companies Act, 1956, which provides for the
conversion of a partnership firm into a company limited by shares, the Courts have taken
the view that in cases of conversion under Part IX, there is an automatic statutory vesting
of all the property of the partnership firm on the date of registration in the company and
that there is no transfer or conveyance. This view has been taken, inter alia, in the cases
of Vali Pattabhirama Rao7and Ramasundari Ray v. SyamendraLal Ray.8On that
reasoning, it is also likely that since no instrument will be required to be executed, there
will be no incidence of stamp duty on such conversion. However, the conversion of a
general partnership into an LLP would have the effect of altering the obligations of the
partners inter se as well as vis-à-vis third parties. In that sense, the Revenue may have an
arguable case for imposing capital gains tax under Section 45 of the Income-tax Act. This
aspect also needs to be clarified.

ADVANTAGES OF THE LLP FORM

No law, they say, is perfect. What, however, makes a good law is the degree and extent to which
it achieves the objectives it seeks to. Following are the advantages of an LLP over other
available forms of business organization.

 An LLP is a hybrid entity that well coalesces some of the acclaimed virtues of a
traditional partnership with those of a company. It mingles the separate legal entity of a

7
(1986) 60 Com Cas 568.
8
1947 ILR (2) Cal 1.

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 company (and all facets of separate legal existence) with the plasticity, tax treatment and
compliance cost of a traditional partnership.
 The separate legal entity ensures that the obligations undertaken are “corporate” rather
than “individual”. In other words, the LLP and the LLP alone (besides, of course, the
wrongdoing partner) can be proceeded against, without the “joint and several” liability of
any and everyone associated. The absence of the agency relationship amongst partners
and the consequent “joint and several liability” is particularly advantageous to
professionals as well as dormant partners. This implies that the maximum risk to which a
non-wrongdoing partner is exposed is capped to his share in the LLP.
 The far more restrictive mandatory disclosure regime applicable to an LLP, compared to
a company, can provide much greater covertness where it is seen as a virtue because of
the nature of the business or the mere desire of (any of) the partners. The cumbersome
procedures applicable to companies, such as minutes, annual meetings, etc. also do not
apply to an LLP. There is one more advantage. This differentiates the partners of an LLP
from the shareholders of a company since the partners have a right to directly manage the
business of the LLP, unlike a company where the business must be managed through the
directors.
 For its “immunity” to dormant partners, an LLP would likely attract many more lending
their names and goodwill to the LLP since this lending does not, per se, make them liable
for the acts of the LLP or its partners. The cost of lending would in turn reflect the
associated risks, which in an LLP are far more limited.

DISADVANTAGES OF THE LLP FORM

 Regulated form of Business: LLP is regulated form of business, as the LLP Act 2008
provides various provisions relating to management of affairs of the LLP which includes
taking the permission of regulatory authority for undertaking certain actions.
 Audit and Financial Disclosure: It is necessary for LLP to get its accounts audited
annually and to prepare its balance sheet and profit and loss account in accordance with

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 the prescribed guidelines. Lot of information as to the financial condition of the business
is required to be disclosed and moreover, all such documents are available for public
inspection, therefore it is not possible to maintain financial secrecy of the business.
 Long Closing Proceedings: It is generally not easy to close the company as compared to
other forms of business, the procedure to close is long and involves compliance of
various formalities, at times it takes 1-2 years to completely wind-up the company.
Moreover in certain cases, it is necessary to take the permission of the High Court to
close the Company.
 Transfer of Interest: It is not easy to transfer the interest in LLP as compared to company;
various formalities are required to comply with in accordance with the terms and
conditions of the LLP Agreement.
 Amendment in LLP Agreement: LLP is governed by the terms and conditions as
prescribed in the LLP Agreement and which if not properly drafted will result in disputed
among the partners , delay in executing decision, requirement of amending the
Agreement or executing a new one, in case the new partners are admitted.
 Lack of Recognition: LLP is recently introduced in India and is therefore not recognized
under various laws for the purpose of carrying various business and moreover due to
being relatively new concept, there is still no clarity on various issues related to it, which
might create problems in its smooth functioning.

CONCLUSION
Before the concept of Limited Liability Partnership being introduced in India it has been
accepted in countries like U.S.A, U.K, Australia, and Germany. This structure is recognized as
the “world’s best practice” structure, designed to not only attract venture capital from offshore
institutional investors but also to retain domestic investment.

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The LLP system combines the advantage of the traditional corporate structure and the
entrepreneur-centric proprietary/partnership structure and will help more "marriages between
brains and bank balances" take place within the small enterprise/business sector, just as is
supposed to happen every time a company in the organized corporate sector issues capital to the
public in the form of equity shares or debentures.9

This is a great relief to the partners, particularly professionals like Company Secretaries,
Chartered Accountants, Cost Accountants, Adv`ocates and other professionals. The hybrid
structure of LLP will facilitate entrepreneurs, service providers and professionals to organize and
operate in an innovative and efficient manner for effectively competing in the global market.

The limited liability partnerships in India offer the foreign investors the much awaited form of
business organization with limited liability and without double taxation. The LLP Act will have a
remarkable effect on the ability of small and closely-held US businesses to target the impending
and ever-growing Indian market.

However, at the same time this form of business structure is susceptible to abuse as well.
Probably the weakest link is the private limited liability partnership agreement. The OECD also
identifies limited liability partnership as being a corporate vehicle, which is vulnerable to misuse,
principally for the reason that it is less regulated than corporations.

In view of its advantages, an LLP offers an attractive alternative to the existing joint venture
companies that are operating in India since it assures limited liability and yet provides
organizational flexibility and limited disclosures. Such an entity would also make a lot of
commercial sense in that it enables get around the taxability of a company at both levels, i.e. in
the hands of the company and in the hands of the shareholders, though in case of foreign
partners, until negotiated as part of a tax treaty, this concern remains. Tax in a foreign
jurisdiction is, of course, often seen as a wasteful expenditure entailing disproportionately low
returns. Its success abroad raises hopes of the acceptance trajectory that this form is likely to take
up in India.

9
R. Gopalakrishnan, SSIs: Why not ask for limited liability partnership?,available at <http://www.
hinduonnet.com /thehindu/features/ssi/stories/2004082800280123.htm>

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 BIBLIOGRAPHY

 Singh Avtar, Law of Partnership (Principles, Practice, and Taxation),(3rd Edn. 2001)
Eastern Book Company, Lucknow.
 Singh S.D., Law of Partnership in India,(3rd Edn. 1988) Orient Law House, New Delhi,
Allahabad.
 http://www.llp.gov.in/tolink/pressreleaseonLLPtaxation.pdf
 http://en.wikipedia.org/wiki/Limited_liability_partnership
 http://www.lawyersclubindia.com/forum/files/33_33_limited_liability_partnership_llp__r
egistration__india.pdf
 www.icsi.edu/.../limitedliabilitypartnership-anewbusinessmodel.pdf
 http://www.blonnet.com/2009/04/02/stories/2009040252220500.htm
 http://www.icai.org/resource_file/11703nccr_pc.htm
 www.qub.ac.uk/mgt/efirg/Corporation.pdf

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