Articles by Catgeory
Compare Llp & Partnership
Posted under Accounting Articles |
Posted By: Corporate Professionals on June 2, 2009
| S. No | Conditions | Partnership | LLP |
| Prevailing Law | Partnership is prevailed by ‘The Indian Partnership Act, 1932’ and various Rules made there under | Limited Liability Partnership are prevailed by ‘The Limited Liability Partnership Act, 2008’ and various Rules made there under | |
| Registration | Registration is optional | Registration with Registrar of Companies required. | |
| Distinct entity | Not a separate legal entity | Is a separate legal entity under the Limited Liability Partnership Act, 2008. | |
| Cost of Formation | The Cost of Formation is negligible | The cost of Formation is statutory filling fees, comparatively lesser than the cost of formation of Company. | |
| Charter Document | Partnership Deed is a charter of the firm which denotes its scope of operation and rights and duties of the partners | 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. | |
| Time line | It will take 7 days (approx.) to incorporate | It will take 10 days (approx.) to incorporate (inclusive of time taken to obtain DPIN) | |
| Tax Liability | Income of Partnership is Taxed at a Flat rate of 30% Plus surcharge as applicable. | Status of LLP has not made clear under the Taxation laws. | |
| Admission as partner / member | A person can be admitted as a partner as per the partnership Agreement | A person can be admitted as a partner as per the LLP Agreement | |
| Statutory Meetings | There is no provision in regard to holding of any meeting | There is no provision in regard to holding of any meeting. | |
| Maintenance of Statutory Records | Required to maintain books of accounts as Tax laws | Required to maintain books of accounts. |
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