Difference between Limited Liability Partnership and Partnership Firm

Difference between Limited Liability Partnership and Partnership Firm :

Sr.

No.

Particulars

Limited Liability Partnership

Partnership Firm

1 Liability Partners Share Limited Liability because they can bind LLP with their act but not to other partners Partners have UNLIMITED Liability hence there are liable for unlawful act of other partners too.
2 Body Corporate LLP treated as a Body Corporate Partnership firm is never treated as body corporate
3 Legal Entity LLP is separate legal entity from its partners. Partners do not enjoy separate legal status from firm.
4 Perpetual succession LLPs enjoy perpetual succession irrespective of death or retirement of either of partner. Partnership can be dissolved on death or retirement
5 Minimum Partners Minimum 2 partners require to Form LLPs Partners are not just restricted to Individuals and Body Corporate.
6 Dissolve Partners cannot dissolve LLP Partnership can be ‘at will’
7 Maximum Partners No limit on no. of partners Maximum number of partners 20(in case of Banking 10)
8 Registration LLP require compulsory Registration Does not require written agreement
9 Property Property can be owned by LLP as it enjoy separate legal existence from its partners Property cannot be held in firm name
10 Who can be partner Partner can be Individual or Body Corporate Partners are not just restricted to Individuals and Body Corporate.
11 Transactions Partner can transact with firm Partner cannot transact with firm
12 IPA,1932 Non-Applicability of Provisions of IPA, 1932 Provisions of Indian partnership Act,1932 apply to partnership firm

 

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