DISTINCTION BETWEEN LLP AND PARTNERSHIP FIRM

Distinction between LLP and Partnership Firm: 

The points of distinction between a limited liability partnership and partnership firm are tabulated as follow

	Basis	LLP	Partnership firm
1.	Regulating Act	The Limited Liability Partnership Act, 2008.	The Indian Partnership Act, 1932.
2.	Body corporate	It is a body corporate.	It is not a body corporate.
3.	Separate legal entity	It is a legal entity separate from its members.	It is a group of persons with no separate legal entity.
4.	Creation	It is created by a legal process called registration under the LLP Act, 2008.	It is created by an agreement between the partners.
5.	Registration	Registration is mandatory. LLP can sue and be sued in its own name.	Registration is voluntary. Only the registered partnership firm can sue the third parties.
6.	Perpetual succession	The death, insanity, retirement or insolvency of the partner(s) does not auect its existence of LLP. Members may join or leave but its existence continues forever.	The    death,    insanity    retirement or  insolvency  of  the   partner(s) may auect its existence. It has no perpetual succession.