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					Compare LLP & Partnership
Prepared by: www.llponline.in (Indian LLP Encyclopedia)

S. No
1.

Conditions
Prevailing Law

Partnership
Partnership is prevailed by ‘The Indian Partnership Act, 1932’ and various Rules made there under Registration is optional Not a separate legal entity The Cost of Formation is negligible Partnership Deed is a charter of the firm which denotes its scope of operation and rights and duties of the partners It will take 7 days (approx.) to incorporate Income of Partnership is Taxed at a Flat rate of 30% Plus surcharge as applicable. A person can be admitted as a partner as per the partnership Agreement There is no provision in regard to holding of any meeting

LLP
Limited Liability Partnership are prevailed by ‘The Limited Liability Partnership Act, 2008’ and various Rules made there under

2. 3. 4.

Registration Distinct entity Cost of Formation Charter Document

Registration with Registrar of Companies required. Is a separate legal entity under the Limited Liability Partnership Act, 2008. The cost of Formation is statutory filling fees, comparatively lesser than the cost of formation of Company. LLP Agreement is a charter of the LLP which denotes its scope of operation and rights and duties of the partners vis-à-vis LLP.

5.

6.

Time line

It will take 10 days (approx.) to incorporate (inclusive of time taken to obtain DPIN) Status of LLP has not made clear under the Taxation laws.

7.

Tax Liability

8.

Admission as partner / member

A person can be admitted as a partner as per the LLP Agreement

9.

Statutory Meetings

There is no provision in regard to holding of any meeting.

10.

Maintenance of Statutory Records

Required to maintain books of accounts as Tax laws

Required to maintain books of accounts.

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DOCUMENT INFO
Description: Provides detailed information as to how to contribution in LLP and answers various questions like What is contribution? How it will be valued? etc.