Media reports (here and here) indicate that the Limited Liability Partnership Bill, 2008 has been passed by Parliament. It was passed in the Lok Sabha on December 12, 2008, while the Rajya Sabha had already approved the Bill on October 24, 2008.
The Ministry of Company Affairs has also published on its website two sets of draft rules relating to LLP for comments from the public:
1. The Limited Liability Partnership (Concept) Rules & Forms: comments due on December 31, 2008; and
2. Concept LLP (Winding up and Dissolution) Rules: comments due on January 12, 2009.
This is an important step under Indian law as it creates a new business vehicle with the flexibility of a partnership structure, but with the protections of separate legal personality and limited liability of a corporate structure. However, before it is successfully implemented, changes will be required to the Income Tax Act to define the tax liability of an LLP and its partners.