'No regulatory nod should be needed for converting into LLP'

The government should do away with a provision for seeking regulatory nod before converting a business entity into a limited liability partnership (LLP), industry body Assocham today said.

LLP is a new business structure that has hybrid features of a partnership firm and a corporate body -- a company's limited liability and the flexibility of a partnership firm.

"Limited liability partnerships (LLPs) will help the economy grow but seeking approvals from regulators while converting companies is not required," the chamber said.

However, it said the approval may be appropriate in cases where companies are registered with regulators – not otherwise, Assocham Secretary General DS Rawat said in a communication to Secretary at the Ministry of Corporate Affairs DK Mittal.

It said LLPs are fast catching up in the country and in only two years after being notified, about 4,580 of them have been registered.

The LLP Act, 2008, was notified in April, 2009.