S. No.
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Particulars
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Partnership Firm
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Limited Liability Partnership Firm
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1.
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Applicability of Act
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Partnership Firm are regulated under Partnership Act 1932
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Limited Liability Partnership Firm are established under Limited Liability Partnership Act 2008
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2.
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Whether registered or not
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Partnership Firm may be registered or non-registered i.e. there is no compulsion to register them.
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Limited Liability Partnership Firm have compulsory to register them i.e. there is no option to choose whether registered or not.
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3.
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Registering Authority
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Partnership Firm if registered under “Registrar of Firms”
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LLPs are registered under “Ministry of Corporate Affairs”
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4.
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Addition of LLP with his name
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Partnership Firm have no requirement to add any additional name at the end of his name i.e. M/s Vertex Industries
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Limited Liability Partnership Firm used LLP at the end of his name. i.e. M/s TAB SOLUTIONS LLP
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5.
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Number of Partners
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Minimum-2
Maximum 100 (as per companies act 2013, earlier it was 20)
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Minimum-2
Maximum-No limit
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6.
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Liability of Partners
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Unlimited
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Limited to the extent of amount Invested
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7.
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Ownership on Assets
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Partners have the full right on assets of the firm
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Partners have no right on assets of the firm
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8.
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File case to Sue others
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The firm can sue but cannot be sued by others
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The firm can sue and can be sued by others
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9.
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Requirement of Digital Signature Certificate
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There is no requirement of DSC
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DSC is required for at least one of partner
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10.
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Requirement of Director Identification Number
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There is no requirement of DIN
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Mandatory of DIN is required
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11.
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Annual Return to MCA
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Not Applicable
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Mandatory to file Annual Return to MCA
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12
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Name of Agreement with Partners
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Name of agreement with partners are called “Partnership Deed”
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Name of agreement with partners are called “LLP Agreement”
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13.
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Audit of Accounts
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As per Income Tax Act Applied
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As per LLP Act. If the Turnover exceeds Rs. 40.00 lakhs or the contribution exceeds Rs. 25.00 lakhs
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14.
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Minutes of Meeting
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Not Applicable
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As per LLP Agreement
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15.
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Separate Legal Entity
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Not Applicable
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LLPs are specified as separate legal entity
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16.
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Dissolution of partnership
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As per mutual consent of the partners, by order of the court, Insolvency or bankruptcy
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Voluntary by law
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17.
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Merger, Amalgamation or Compromise
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Not Applicable
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Can enter in to Merger, Amalgamation or compromise
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18.
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Creditability
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Depends upon the operation of the firm
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Higher as compared to partnership firm
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19.
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Formation Cost
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It has low formation cost say negligible
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It has lightly higher formation cost as compared to partnership firm.
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20.
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Termination of Partnership
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The Partnership deed may be terminated if any partner is expired or resigned
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The LLP agreement is not terminated if any partner is expired or resigned.
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