LLP and Partnership Firm are both the types of business formations through which Partnership business can be done.
LLP is a new concept while Partnership is an old concept. LLP and Partnership are different as Partnership is an old concept while LLP is a newly established concept introduced in India by Limited Liability Partnership Act, 2008.
Under the partnership, each partner owns a share of the business. This is a business structure which is less expensive and it is even more customizable than a corporation while Limited Liability Partnership has the advantages of both Partnership and LLP as it has the limited liability of the Partners.
Differences between LLP and Partnership Firm
|Particulars||Limited Liability Partnership||Partnership|
|Registration under Act||It is registered under LLP Act, 2008||It is registered under Partnership Act, 1932|
|Registered to||LLP registration is done with to Ministry of Corporate Affairs||Partnership registration is done with to Registrar of firms.|
|Liability||One of the main difference between LLP and Partnership is about the liability of Partners. Since the partner and the firm is considered as a separate legal entity. Hence, the liability of the partners is limited to the amount invested in the company.||Since the partner and the firm is not considered as a separate legal entity. Hence, Partners are personally liable for the unlimited amount of liabilities of the partnership|
|A number of partners and requirements||
|Agreement between partners||LLP Agreement governs the operation, management and decision-making methodologies and other activities of the LLP.||Partnership Deed governs the operation, management and decision-making methodologies and other activities of the partnership.|
|Compliance||Mandatory to file the annual return to Ministry of Corporate Affairs. You can get LLP Annual filing with LegalRaasta at just Rs 2499/-||No requirement of annual return filing|
|Cost of registration||Get LLP Registration online for Rs. 7999/- only.||Get partnership registration online for Rs.2199/- only.|