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LIMITED LIABILITY PARTNERSHIP: LIMITING THE UNLIMITED LIABILITY OF PARTNERS

Abstract

Abstract: Partnership is one of the oldest models of business relationship. Though limited liability companies have replaced partnership firms to a great extent in modern complex business world, however partnership form of business is still preferred by professionals and small trading and business enterprises in India, but because of its unlimited liability concept, it has got less momentum in India. Here business concerns are mainly operated as sole proprietorship, partnership and company forms. Each of these forms is subject to different regulatory and tax regimes reflecting their organization and ownership.Keywords: Sole Proprietorship, Limited Liability Partnership, Legal entity, unlimited liability, contribution, designatedpartners.

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