Govt approaches EC to notify LLP rules

The government has approached the Election Commission (EC) seeking the permission to come out with the rules for introducing a new form of business entity called Limited Liability Partnership (LLP) which will specially benefit the services sector.

"We have written a letter to the EC seeking their permission to notify the rules and provisions of the LLP Act," sources said.

Limited Liability Partnership is a form of entity where the partners' liability is limited to the extent of their stake.

LLP will specially benefit the service sector by providing a platform to professionals like chartered accountants and company secretaries to come together to form an LLP and provide a single-window shop to all people wanting to avail professional services.

The LLP entities were originally scheduled to be permitted from the first day of the new fiscal but got delayed since the rules have not been notified yet.

While President Pratibha Patil has given assent to the LLP Act, rules are yet to be notified.