1 Answers
LLP and Partnership Firm both look alike but are separate and have separate features:
- Legal base: Limited Liability Partnership is based on “Limited Liability Partnership Act, 2008” and regular partnership is based on “Partnership Act, 1932”.
- A number of partners: In a Partnership firm, a minimum of two partners and a maximum of fifty partners are allowed and in LLP minimum of two partners and a maximum no limit.
- Liability: In LLP, partners have limited liability while in a partnership firm, partners have unlimited liability.
- Transfer of ownership: There is no restriction on joining and leaving the LLP, but in a partnership firm, partners cannot transfer their shares without the permission of other partners.
7 views
Answered