The main differences between partnership and limited liability partnership are as under:
1. Regulatory Act:Partnership is governed by the partnership act, 1932 whereas a Limited Liability Partnership (LLP) is governed by Limited Liability Partnership Act, 2008.
2. Registration: In partnership registration is not compulsory whereas in Limited Liability Partnership it is required.
3. Perceptual succession:Partnership does not have perpetual succession whereas Limited Liability Partnership has perpetual succession.
4. Liability of partners: A liability of a partner is unlimited in partnership whereas in Limited Liability Partnership liability of a partner is limited to his agreed contribution.
5. Mutual Rights and Duties: In partnership mutual rights and duties of partners are subject to agreement between the firm and the partners whereas in Limited Liability Partnership no partner is liable for the independent acts of other partners.
6. Number of Partners: In partnership there the maximum number of partners cannot exceed 50 whereas in Limited Liability Partnership there is no upper limit on number of partners.
