Which act regulates limited liability partnerships in India?

The regulation of limited liability partnerships in India is specifically governed by the Limited Liability Partnership Act, 2008. This legislation was enacted to provide a flexible regime for the formation, operation, and management of limited liability partnerships, combining features of both partnerships and corporations.

The act offers limited liability to its partners, meaning their personal assets are protected from the debts and liabilities of the partnership. This allows for a more secure structure for those engaging in business together without the full exposure to risk that traditional partnerships might entail.

In contrast, while the Indian Partnership Act, 1932, addresses traditional partnerships, it does not encompass the unique elements that limited liability partnerships possess. The Companies Act, 2013, primarily deals with the regulation of companies and their corporate governance but does not specifically address limited liability partnerships. The Negotiable Instruments Act, 1881, focuses on the laws regarding negotiable instruments and is unrelated to partnership structures.

Thus, the Limited Liability Partnership Act, 2008 is the right choice, as it is the legislation that directly governs limited liability partnerships in India, providing a legal framework tailored to their specific needs and features.