Differences

 

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

 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

  • Minimum 2 and no upper limit for maximum number of partners in LLP.
  •  No minor can be partner
  • Minimum 2 and maximum 20 partners can be the member of the partnership firm.
  • Minor can be a partner.

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.

Transferability /Conversion

  • Shares can be easily transferred to another person after obtaining the required consent from all the Partners in an LLP.
  • The transferee cannot become partner automatically.
  • LLP cannot be converted back to the partnership but can be converted to Private Limited Company or Limited Company easily.
  • Shares can be transferred to another person after obtaining the required consent from all the Partners in a Partnership.
  • Transferability of the partnership a is a lengthy process.
  • Conversion of partnership to LLP or Private Limited Company is a burdensome process.

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.