With the motive to provide a new flexible business model for entrepreneurs and professionals engaged in trade, professional services and technology-based enterprises, a new and revised Limited Liability Partnership (LLP) Bill, 2008, was introduced by the government on Tuesday. The LLP Bill of 2006 gets replaced by this new-much awaited draft legislation.

In the Income-Tax Act, the tax structure of the new form of business would be addressed separately. Prem Chand Gupta the minister for corporate affairs, took the initiative to introduce the bill.

This limited liability partnership format for companies, will definitely bring smiles on the faces of lawyers, chartered accountants and others who want to set up large entities with multiple specializations. The professionals would also be widely helped by this proposed LLP legislation, who would be allowed to them to join hands in order to set up bigger enterprises.

The LPP format is being banked up by the government with the aim to support domestic industry compete with international firms when the legal and accounting professions are opened up ultimately.