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Difference Between Limited Liability Partnership and Partnership Firm

The key differences between a Limited Liability Partnership and a Partnership Firm are: 1) A Limited Liability Partnership is created by law and is a separate legal entity, while a Partnership Firm is created by contract and is not a separate legal entity from the partners. 2) A Limited Liability Partnership has perpetual succession and can purchase property in its name, while a Partnership Firm does not have perpetual succession and cannot purchase property in its name. 3) Formation of a Limited Liability Partnership involves more formalities like filing various e-forms with the ROC within 20 days, while formation of a Partnership Firm only requires filing a partnership deed with the Registrar of

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166 views3 pages

Difference Between Limited Liability Partnership and Partnership Firm

The key differences between a Limited Liability Partnership and a Partnership Firm are: 1) A Limited Liability Partnership is created by law and is a separate legal entity, while a Partnership Firm is created by contract and is not a separate legal entity from the partners. 2) A Limited Liability Partnership has perpetual succession and can purchase property in its name, while a Partnership Firm does not have perpetual succession and cannot purchase property in its name. 3) Formation of a Limited Liability Partnership involves more formalities like filing various e-forms with the ROC within 20 days, while formation of a Partnership Firm only requires filing a partnership deed with the Registrar of

Uploaded by

Anjli Sampat
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Difference between Limited Liability Partnership and Partnership Firm

PARTICULAR

LIMITED LIABILITY PARTNERSHIP

PARTNERSHIP FIRM

Governing Law

The Limited Liability Partnership Act, The Indian Partnership Act, 1932 2008 and various Rules made and various Rules made thereunder thereunder Compulsory Created by law It is separate legal entity, separate from its partners\ designated partners. It has perpetual succession. LLP can also purchase movable / immovable property in its name Optional Created by contract It is not separate legal entity from partners. Partners are collectively referred as firm. It does not have perpetual succession. Partnership firm cannot purchase movable / immoveable property in its name. the same must be purchased in the name of partners.

Registration Creation Separate Legal Entity Perpetual succession Purchase of Property

Common Seal

It denotes the signature of the Not required Company and LLP may have its own common seal, if it besides to have one. Various documents / declarations executed in prescribed formats prefilled in designated e-forms are required to be filed with ROC along with filing fee. Partnership deed along with form/ affidavit required to be filed with Registrar of firms along with requisite filing fees.

Formalities of Incorporation

Time line

It will take approx. 20 days to It will take approx. 7 days to incorporate ( inclusive of time taken incorporate. to obtain DPIN)

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