EVOLUTION OF LIMITED LIABILITY PARTNERSHIPS AND WHETHER THEY FORM BETTER MEANS OF INCORPORATION

Abstract

Limited Liability Partnerships are the most recent forms of incorporation of a business enterprise and have emerged as a convenient and appropriate form of a business enterprise. In India, Limited Liability Partnerships got legal recognition after the enactment of the Limited Liability Partnership Act of 2008. Hence, the law on Limited Liability Partnerships is certainly new as compared to the laws governing companies and conventional partnerships in India. It is often considered that Limited Liability Partnerships are a better form of incorporation since it has the qualities of a partnerships but the liability of partners is kept as limited, similar to the liability of shareholders in a company. This paper would present a study on the features of Limited Liability Partnerships and would determine whether Limited Liability Partnerships are better in terms of incorporation as a business enterprise as against a conventional partnership firm and a public or private company. This Research Paper would look into the concept of liability in a Limited Liability Partnership and their particulars with respect to fiduciary duties, securities and bankruptcy and also provide means in which further research needs to be conducted in order to establish a determined law on LLPs. The paper would also present certain crucial statistical data that would represent the growth in terms of number of Limited Liability Partnerships registered in India on a monthly basis as well as how the COVID-19 pandemic has affected the decision of businessmen relating to selecting the most appropriate form of incorporation of their businesses.