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Discuss the concept of “Limited liability partnership” while bringing out the benefits and concerns associated with a special reference to Indian economy.

Topic:  Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

5. Discuss the concept of “Limited liability partnership” while bringing out the benefits and concerns associated with a special reference to Indian economy. (250 words)

Reference:  Financial Express 

Why this question:

The government is set to introduce an amnesty scheme for Limited Liability Partnership (LLP) firms for delays in mandatory filings which could benefit 20-25 per cent of the 1.25 lakh LLPs registered in the country. Thus the question.

Key demand of the question:

The answer must discuss the significance concept of “Limited liability partnership” while bringing out the benefits and concerns associated with a special reference to Indian economy.

Directive:

Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.

Structure of the answer:

Introduction:

Briefly define what LLP is.

Body:

Start with the recent decisions made with respect to the move – it is aimed at bringing non-compliant LLPs into the legal fold. Explain – LLP is an alternative corporate business firm that gives the benefits of limited liability of a company and the flexibility of a partnership. Highlight the key features of LLP.

Discuss that ; LLP form is a form of business model which –

  • is organized and operates on the basis of an agreement.
  • Provides flexibility without imposing detailed legal and procedural requirements.
  • enables professional/technical expertise and initiative to combine with financial risk taking capacity in an innovative and efficient manner.

List down the concerns associated while suggesting way forward.

Conclusion:

Conclude by reasserting the significance of such concepts applied to the economy.