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 |
