Basic difference between Partnership Firm, Company and LLP in India. To be used for general knowledge purpose only.

1. JMJA & Associates LLP Private & Confidential
For discussion purpose only
Distinctions between General Partnership, LLP and Indian Company
Sr.
No.
Feature General Partnership LLP Indian Company
1 Governing
Law
Partnerships are
governed by Partnership
Act, 1932
LLPs are governed and
regulated under Limited
Liability Partnership Act,
2008
Indian Companies are
governed and regulated
under Indian Companies
Act, 2013
2 Number of
Members
Partnership formed by at
least two partners and
maximum partners could
be 10 in case of banking
business or 20 in case
of other business
activities
LLP should have a
minimum of 2 members.
There is no limit on
maximum number of
members
Private Company should
have minimum 2 and
maximum 200 members
whereas Public
Company should have
minimum of 7 members
3 Charter
Document
Partnership Deed is the
charter document
entered and executed
between partners
The charter document
for the LLP is LLP
Agreement entered and
executed between
partners of LLP
Memorandum of
Association and Articles
of Association are the
charter documents of
the Company
4 Name Name of the partnership
does not suffixed by any
specific words
Name contains ‘Limited
Liability Partnership’ or
‘LLP’ as suffix after the
name
Name contains ‘limited’
or ‘private limited’ as
suffix, as the case may
be, after the name
5 Statutory
Compliances
Normally no compliance
is required under the
Partnership Act, 1932
Designated partner shall
look after statutory
compliances otherwise
all partners can look into
affairs of the LLP.
Board of Directors are
responsible for statutory
compliances to be
complied by the
Company
6 Resident
Director /
Designated
Partner
At least one of the
Designated partner
should be resident of
India
Directors of the
Company need not be
resident of India except
one if all other directors
are foreigner
7 Source of
Finance
LLP is flexible however,
it cannot take capital
contribution from the
public at large
Company is more
flexible, it can raise the
funds through various
ways like, public offer,
etc.
8 Variation in
Charter
Document
Variation can be made
only in accordance with
the procedure laid down
Variation can be made
by the members in
general meeting by way

2. JMJA & Associates LLP Private & Confidential
For discussion purpose only
in the schedule / LLP
Agreement
of special resolution
passed
9 Legal Status A LLP on being
incorporation acquires a
legal status separate
from its partners.
A Company on its
incorporation acquires a
legal status separate
from its members.
10 Extent of
Liability
The liability of the
partners in a LLP is
limited to the extent of
their capital contribution.
The LLP property is
liable for the debts of the
partnership except in
case of fraud committed
by a partner in which
case his personal
property becomes liable.
The liability of a
shareholder of a limited
Company is limited to
the extent of unpaid
share by a shareholder
11 Management The partners of the LLP
as per the LLP
agreement are
responsible for the
management. The
designated partners are
responsible for the
business activities as
well as compliance with
the LLP Act and other
applicable laws.
The Board of Directors
are responsible for
management of the
Company including
compliance with the
corporate laws.