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5 Issue 6 Int'l J.L. Mgmt. & Human. 830 (2022)
Need for Introduction of Limited Liability Partnership in India

handle is hein.journals/ijlmhs20 and id is 829 raw text is: International Journal of Law Management & Humanities Need for Introduction of Limited Liability Partnership in India NITYA SANGHAVII ABSTRACT The purpose of this paper is to understand the necessity of introduction of Limited Liability Partnership in India. This paper helps in understanding the basic concept on an LLP and its features. The paper briefly discusses why an LLP is the need of the hour for businesses in India and how it will help the economy. It also analyses various case laws and acts relating to this type of partnership. The paper throws light on the current stance of LLP in India. Various research papers and articles on LLP have been reviewed. Lastly, suggestions to improve the LLP framework have also been mentioned. Keywords: LLP, hybrid, business, partner, corporate. I. INTRODUCTION Limited Liability Partnerships, or LLPs are a type of business that combines certain benefits of partnerships with those of corporations. An LLP is regarded as an alternate or hybrid corporate vehicle because it gives its members the freedom to arrange their internal management structure as a partnership based on mutual understanding, while also limiting their liability to the amount of their partnership interest, which corresponds to the distinct legal personality of a company. In Edlinger v. United States, the liability of a partner to the extent of their interest in the partnership or act or omission was upheld2. Due to the benefits that the LLP business model provides, legislation has been passed in many jurisdictions to incorporate and govern LLP operations. Although the idea of an LLP was first proposed by the 7th Law Commission of India in 1957, it was not until March 2009 that it obtained statutory recognition in India through the Limited Liability Partnership Act, 2008.3The number of LLP registrations in India is increasing, and traditional unlimited partnerships are being converted to LLPs, providing them a desired status in the Indian corporate environment. On July 30, 2021, the Limited Liability Partnership (Amendment) Bill, 2021, was introduced in 1 Author is a student at Kirit P Mehta School of Law, NMIMS, India. 2 EDLINGER v. U.S. I No. 3:10-cv-148. 1 20100415a41 I Leagle.com Leagle, https://www.leagle.com/decision/ infdco20100415a41 (last visited Sep 17, 2022 3 Bhumesh Verma, LLPs In India - All You Want To Know - Corporate and Company Law - India Mondaq.com (2016), https://www.mondaq.com/india/corporate-and-company-law/552322/llps-in-india--all-you-want-to-know (last visited Aug 25, 2022). © 2022. International Journal of Law Management & Humanities [ISSN 2581-5369] 830 [Vol. 5 Iss 6; 830]