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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CA. Kalpesh Karia

CA. Kalpesh Karia is a Fellow Chartered Accountant . He founded and developed this blog ' FinanceFriend.in ' in 2012. He regularly posts articles related to finance and taxation on his blog. As the name suggests, he is trying to be a Finance Friend and wants to give back to society what he has learned over the years. He shares knowledge based on his 18 years of experiences in areas like Finance, Accounts, Taxation, Forex & Treasury , Wealth Management & Financial Planning, Costing, SAP and Digital Transformation .

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