Typing Test


Over the past two decades, India has an ‘open economy' and is transitioning into the next phase of growth cycle. As India navigates through and era of second generation reforms, one would witness a remarkable expansion of foreign presence on the Indian Economic Canvass and creation of ample opportunities for exploration and exploitation of the vest potential resources in our country. The liberalizations in the extant Foreign Direct Investment (FDI) policy and amendments in the statutes such as the proposed Companies Bill, the competition Act would stimulate fiscal consolidation. With the west in crisis and growing pace of imminent reforms in India, global players with an objective of expanding their footprint seek to utilize the ever growing prowess of the services sector in India.Entrepreneurs/professionals earlier had an option to explore setting up a proprietary concern, partnership firm or a corporate entity. However, professional services, where personalized expertise is of essence, were required to be rendered either by individuals or or venture capitalists were also forced to form dproprietary partnership firms owing to their simplicity and ease to function in the absence of capital required to start a large scale corporate entity. Partnership reflects ‘any' sort of an association between persons who pool their resources with a view of carrying on business and participating in its profits and/or losses. Thus, they were never the first choice given the unlimited liability. Mutual agency and lack of perpetual succession chausses. Moreover, a partnership always lacked the sufficient credentials in eyes of bank/financial institutions as opposed to a company. Enormous compliance and administrative requirements coupled with high capital requirement acted as deterrents in formation of a company. Hence, emanated the need for a hybrid entity to bring the emerging entrepreneurs at par with their intonation competitors and enable the new entrants to establish business operations in India.This notion gave birth to the LLP Framework and it was recognized as a business form by the Limited Liability Partnership Act, 2008 (LLP Act) administered by the Registrar of Companies (ROC) in India. Initially, the concept of LLP had surfaced in response to the financial crunch and crumbling prices during 1980's in the United States of America. Since then, it has been a prevalent business form in various countries across the globe. Even the Indian LLP Act is based on UK and Singapore LLP structure.\LLP-is a form of business organization in which the liability of partners is limited to the extent of their interest in the partnership, owing to its company type, separate legal personality and yet having the organization suppleness and tax treatment of a partnership-constituting the most recent optimization of regulatory innovation. LLP is a body corporate with separate legal entity having perpetual succession. Since, an LLP contains to features of both a Corporate structure and a Partnership firm it helps to remove the defects of unlimited liability under partnership and rigidity of provisions prevalent for the companies under the Companies Act, 1956. With minimum number of designated partners as two, there is no bar on the maximum number of partners therein. The concept of mutual agency has also been scrapped allowing individual partners to be shielded from joing liability created by other partner's wrongful business decisions or misconduct Future, as compared to a corporate entity, LLP has less compliance issues and is guided by an agreement between to partners wherein they can suitable retain the control and management as desired by them.Vast entrepreneurial knowledge combined with risk capital and economy's proven resilience to counter macroeconomic challenges has veritably changed to Indian economic outlook. It is likely that in times to come Indian professionals would render various professional/technical services in areas of taxation, litigat