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Comparison - Partnership Firm v/s LLP

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With introduction of Limited Liability Partnership Act, 2008, LLPs have started taking place of Partnership Firms. As LLPs are easy to incorporate and having range of benefits over Partnership Firm, the small and medium businesses are preferring Limited Liability Partnership over Partnership Firm. Limited Liability, easy transferability, perpetual succession are some of the benefits of Limited Liability Partnership over a Partnership Firm. Know more at MyEfilings Knowledge Centre.

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Comparison - Partnership Firm v/s LLP

  1. 1. Comparison – Partnership v/s LLP
  2. 2. Introduction Before introduction of Limited Liability Partnership Act, 2008, Partnership Firm was one of the most popular types of business in India. With introduction of Limited Liability Partnership Act, 2008, LLPs have started taking place of Partnership Firms.
  3. 3. Act • Partnership Firms are governed by Partnership Act, 1932. • LLP is governed by Limited Liability Partnership Act, 2008. Liability • Partner’ liability is unlimited • In LLP liability is limited Comparisons
  4. 4. Partners • Minimum 2 and maximum 20 in Partnership Firm • Minimum 1 and maximum 20 in LLP Transferability of Shares • Only after consent of all partners in Partnership Firm • Easier transfer of shares in LLP Comparisons
  5. 5. Compliances • No annual compliances to be followed by Partnership • Every LLP has to file an Annual Return with the Ministry of Corporate Affairs Registration • Registration of Partnership Firm is done under Partnership Act, 1932 • Registration of Limited Liability Partnership is done under Limited Liability Partnership Act, 2008. Comparisons
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