Nagpur, Sep 27 (UNI) The Limited Liability Partnership (LLP) Bill, which seeks to create a new class of corporate entities with the partners having limited liability, is likely to be passed in next year's budget session of the Parliament, according to Vinod Jain, central council member of The Institute of Chartered Accountants of India (ICAI).
Speaking to reporters here today, Mr Jain said that the new provision would benefit professionals like doctors, lawyers and chartered accountants as it will help them float partnership firmswith limited liability for each partner, except in case of fraud. A firm could also have unlimited number of partners under the proposed act, he said.
At present, partners in a partnership firm have unlimited liability, and there is also a ceiling on the number of partners in a firm, Mr Jain said. The bill had already been tabled before Parliament and referred to the Standing Committee on Finance, he said. The standing panel had sought views and suggestions from ICAI, especially on cross-border mergers, taxation and one-person LLP, Mr Jain, who is also the Chairman of ICAI's Corporate and Allied Committee, added.