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
  • 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.