The Partnership Act, 1932, places unlimited responsibility on the partner, whereas the company laws viz. Companies Act, 1956, seeks to pay heavy punishment including imprisonment for the individuals operating the business to comply with multiple clauses otherwise. A fresh company form, i.e. Limited Liability Partnership (LLP) emerged with the enactment of the Limited Liability Partnership Act, 2008 (the Act), informed on March 31, 2009. This structure has become quite common among Small and Medium Enterprises (SMEs), Professional Services and Small Enterprises as this business form seeks to integrate the partnership's operational flexibility with advantages of limited liability and a company's distinct legal identity. Therefore this paper discusses significantly about the various features of LLPs, their advantages and disadvantages, the LLP Act 2008 and also the taxation of LLPs in India .
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