## The Limited Liability Partnership Act, 2008 – Introduction
### Legislative history
- Bill passed by Parliament: 12 December 2008.
- Presidential assent: 7 January 2009.
- Most sections enforced from: 31 March 2009.
- Total sections: 81.
- Schedules: 4.
### What the four Schedules cover
| Schedule | Subject |
|---|---|
| First Schedule | Default mutual rights & duties of partners and of the LLP–partner relationship, applicable where the LLP agreement is silent. |
| Second Schedule | Conversion of a firm into LLP. |
| Third Schedule | Conversion of a private company into LLP. |
| Fourth Schedule | Conversion of an unlisted public company into LLP. |
### Administering authority
- The Ministry of Corporate Affairs (MCA) and the Registrar of Companies (ROC) administer the LLP Act.
- The Central Government has the power to frame Rules and amend them through notifications in the Official Gazette.
### Why this new form was needed
Indian business previously had two extremes:
- Traditional partnership — flexible, but unlimited personal liability.
- Limited liability company — limited liability, but a rigid statute-based governance structure (compliance heavy).
The LLP fills the gap. It provides:
- Limited liability (like a company), AND
- Flexibility to design the internal management through a mutually-agreed agreement (like a partnership).
This hybrid is especially suited to professionals (CAs, lawyers, consultants), scientific & technical service providers, and entrepreneurs who need an efficient, flexible vehicle.