1.Compare LLP vs Partnership Registration                                                        

Partnership Registration is governed by Partnership Act 1932. Its most popular registration for small and medium business. Its simple , cost saving and having less annual compliances. Where as LLP Registration comes under Limited Liability Partnership Act 2008 which required partners to have DIN Number and DSC. LLP registration is easy and gives various benefits to its partners. In this article discussing about choose between LLP and Partnership Firm and  difference between LLP and Partnership Firm in India.

S.NO.	Particulars	Partnership Firm	LLP
1	Name of the firm	No Specification	Name Should end with LLP
2	Minimum No. of Partners	Minimum 2	Minimum 2
3	Maximum No. of Partners	Maximum 20	Infinite
4	Creation by	Firm Contract	Created by Law

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2. Compare Cost of Registration

Cost of Registration for Partnership is lower as compared to LLP. As there is no need of DIN Number and DSC. Where as for LLP , partners need to have DSC and DIN Number. Also documents and form need to certified by Professional ( Like Chartered Accountant / Company Secretory ). For Partnership registration fees need to be paid at ROF department and for LLP pay at MCA.

S.NO.	Particulars	Partnership Firm	LLP
1	Cost of Registration	3500/-	Rs. 7500/-
2	Government fees	to ROF	to MCA

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3.Compare Taxation of LLP Vs Partnership Taxation

For purpose of Income taxation LLP and Partnership firm considered as same. Income Tax rate for both is 30 % + education cess.

S.NO.	Particulars	Partnership Firm	LLP
1	Income Tax Rate	30%	30%
2	ITR Filing Due Date ( No Audit )	30 July	30 July
3	ITR Filing Due Date ( Under Audit )	30 September	30 September

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4. Annual Compliances LLP Vs Partnership Firm

LLP annual filing need to done  by filing Form 8 and Form 11. Both form need to be filed online with use of digital signature. For non filing late fees of Rs. 100/- per day per Form is applicable. For Partnership Firm there is no need of doing annual compliances.

S.NO.	Particulars	Partnership Firm	LLP
1	Annual Compliance – Form 8	NA	Yes
2	Annual Compliance – Form11	NA	Yes
3	Cost of Annual Compliances	NA	Rs. 2499/- Onwards at ANB

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5.Conversion/Transfer LLP Vs Partnership Firm

Partners share in partnership firm can be transfer to another person. Firm simply need to amend firm agreement. Also Convert Partnership firm into LLP or Convert Partnership firm into Private Limited is possible.

Similar to firm , shares of LLP can be transferred to another person. Firm need to do filing at MCA and amend partnership agreement. A LLP can be converted to a Private Limited Company.

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6. Partners Liability difference LLP Vs Partnership Firm

The Partners liability under Firm is unlimited as per Partnership Act 1932. Partners are personally liable for liabilities of firm. In Legal definition Partners and partnership firm are not considered separate entities.

Major difference between LLP and Partnership firm is LLP’s Partners are not personally liable for liabilities of firm. There liability is limited to amount of capital contribution.

S.NO.	Particulars	Partnership Firm	LLP
1	Partners Liability	Unlimited	Limited
2	Partners Liability  to up	Unlimited	up to capital Contribution

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7. Governing Body of Registration

S.NO.	Particulars	Partnership Firm	LLP
1	Governing Body	Partnership Act 1932	Limited Liability Partnership Act 2008
2	Online Filing at	ROF	MCA

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8. Foreign Direct Investment in LLP vs Partnership Firm

Foreign Direct Investment for Partnership firm in India is not allowed. FDI investment not possible in Firm. Where LLP can receive capital contribution under FDI.

S.NO.	Particulars	Partnership Firm	LLP
1	FDI	Not Allowed	Allowed

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9. DIN Requirement

As per Partnership Act 1932 for firm registration there is no requirement of DIN Number. Where for in LLP designated partners need to have DIN Number.

S.NO.	Particulars	Partnership Firm	LLP
1	DIN Number	NA	DIN Required

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Conclusion

From above discussion both LLP vs Partnership firm have own advantages and disadvantages. However LLP is gives name reservation that creates goodwill for firm. Liabilities of partners in limited upto capital contribution in firm. Also partners are not help liable for act of other partners.

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