The Limited Liability Partnership Act, 2008 and the Indian Partnership Act, 1932 differ mainly in structure, liability, and legal status.
π Key Differences:
- Legal Status
LLP is a separate legal entity; partnership is not.
- Liability
LLP β Limited liability
Partnership β Unlimited liability
- Registration
LLP β Mandatory
Partnership β Optional
- Continuity
LLP β Perpetual succession
Partnership β Can dissolve on partner exit
- Ownership
LLP owns assets
Partnership assets belong to partners
π Conclusion: LLP is more secure and modern compared to traditional partnership.