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Tutorial-2 Major difference between Ordinary Partnership and LLP are as follows:

In the previous article we discussed about the............................ in this article, we will further difference between LLP and ordinary partnership.

S.N	Reasons	Ordinary Partnership	LLP
1	Applicable law	Indian Partnership Act 1932.	Limited Liability Partnerships Act 2008.
2	Registration	Registration is Optional	Registration is compulsory with ROC.
3	Separate Legal Identity	Ordinary Partnership do not have separate identity	LLP has separate legal identity.
4	Creation	It is created by an agreement between partners.	It is created by law.
5	Perpetual succession	Ordinary Partnership do not have perpetual succession.	It has perpetual succession and individual partners may come and go.
6	No. of member	At least 2 and maximum of 20 Partners.	Minimum 2 members are required but there no limit for maximum member.
7	Liability of Partner/member	Liability of partners is unlimited and every partners are responsible jointly or severally for work done by each other.	Liability of partners are limited to the extent of their contributions to LLP
8	Principal agent relationship	Partners are the agents of the firm and of each other.	Partners are agents of the firm only and not of other partners.
9	Ownership of Assets	Partnership firm can not own any assets.	As the LLP is the separate legal entity, it can own assets.

If you want to form an ordinary Partnership, there is no need for registration. Individuals can do business without registering the Partnership. So if you want to form a Partnership, go ahead and form a partnership business without the burden of registration the major concerns of people is about proceedings and documentations. People choose to form a simple partnership because they do not want the long legal proceedings and regulations that come along with forming a LLP.Don’t worry, the complexity is slightly overrated. Formation of Partnership is definitely easier from a regulatory point of view but all the basic procedures – getting a Service Tax / VAT registration, getting a PAN & TAN Card, opening a fresh bank account and getting an IEC still have to be complied with, even if you start as a simple Partnership. And if your income is above the taxable limit, you need to file tax returns irrespective of whether you are a simple Partnership or LLP.

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Tutorial-2 Major difference between Ordinary Partnership and LLP are as follows:

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&nbsp;
<table>
<tbody>
<tr>
<td>
S.N
</td>
<td>
Reasons
</td>
<td>
Ordinary Partnership
</td>
<td>
LLP
</td>
</tr>
<tr>
<td>
1
</td>
<td>
Applicable law
</td>
<td>
Indian Partnership Act 1932.
</td>
<td>
Limited Liability Partnerships Act &nbsp;2008.
</td>
</tr>
<tr>
<td>
2
</td>
<td>
Registration
</td>
<td>
Registration is Optional
</td>
<td>
Registration is compulsory with ROC.
</td>
</tr>
<tr>
<td>
3
</td>
<td>
Separate Legal Identity
</td>
<td>
Ordinary Partnership do not have separate identity
</td>
<td>
LLP has separate legal identity.
</td>
</tr>
<tr>
<td>
4
</td>
<td>
Creation
</td>
<td>
It is created by an agreement between partners.
</td>
<td>
It is created by law.
</td>
</tr>
<tr>
<td>
5
</td>
<td>
Perpetual succession
</td>
<td>
Ordinary Partnership do not have perpetual succession.
</td>
<td>
It has perpetual succession and individual partners may come and go.
</td>
</tr>
<tr>
<td>
6
</td>
<td>
No. of member
</td>
<td>
At least 2 and maximum of 20 Partners.
</td>
<td>
Minimum 2 members are required but there no limit for maximum member.
</td>
</tr>
<tr>
<td>
7 
</td>
<td>
Liability of Partner/member
</td>
<td>
Liability of partners is unlimited and every partners are responsible jointly or severally for work done by each other. 
</td>
<td>
Liability of partners are limited to the extent of their contributions to LLP
</td>
</tr>
<tr>
<td>
8
</td>
<td>
Principal agent relationship
</td>
<td>
Partners are the agents of the firm and of each other.
</td>
<td>
Partners are agents of the firm only and not of other partners.
</td>
</tr>
<tr>
<td>
9
</td>
<td>
Ownership of Assets
</td>
<td>
Partnership firm can not own any assets.
</td>
<td>
As the LLP is the separate legal entity, it can own assets.
</td>
</tr>
</tbody>
</table>
If you want to form an ordinary Partnership, there is no &nbsp;need for &nbsp;registration. Individuals can do business &nbsp;without registering the Partnership. So if you want to form a Partnership, go ahead and form a partnership business without the burden of registration the major concerns of people is about proceedings and documentations. People choose to form a simple partnership because they do not want the long legal proceedings &nbsp;and regulations that come along with forming a LLP.Don&rsquo;t worry, the complexity is slightly overrated. Formation of Partnership is definitely easier from a regulatory point of view but all the basic procedures &ndash; getting a Service Tax / VAT registration, getting a PAN &amp; TAN Card, opening a fresh bank account and getting an IEC still have to be complied with, even if you start as a simple Partnership. And if your income is above the taxable limit, you need to file tax returns irrespective of whether you are a simple Partnership or &nbsp;LLP. 
&nbsp;

<table>
<tbody>
<tr>
<td>
S.N
</td>
<td>
Reasons
</td>
<td>
Ordinary Partnership
</td>
<td>
LLP
</td>
</tr>
<tr>
<td>
1
</td>
<td>
Applicable law
</td>
<td>
Indian Partnership Act 1932.
</td>
<td>
Limited Liability Partnerships Act  2008.
</td>
</tr>
<tr>
<td>
2
</td>
<td>
Registration
</td>
<td>
Registration is Optional
</td>
<td>
Registration is compulsory with ROC.
</td>
</tr>
<tr>
<td>
3
</td>
<td>
Separate Legal Identity
</td>
<td>
Ordinary Partnership do not have separate identity
</td>
<td>
LLP has separate legal identity.
</td>
</tr>
<tr>
<td>
4
</td>
<td>
Creation
</td>
<td>
It is created by an agreement between partners.
</td>
<td>
It is created by law.
</td>
</tr>
<tr>
<td>
5
</td>
<td>
Perpetual succession
</td>
<td>
Ordinary Partnership do not have perpetual succession.
</td>
<td>
It has perpetual succession and individual partners may come and go.
</td>
</tr>
<tr>
<td>
6
</td>
<td>
No. of member
</td>
<td>
At least 2 and maximum of 20 Partners.
</td>
<td>
Minimum 2 members are required but there no limit for maximum member.
</td>
</tr>
<tr>
<td>
7 
</td>
<td>
Liability of Partner/member
</td>
<td>
Liability of partners is unlimited and every partners are responsible jointly or severally for work done by each other. 
</td>
<td>
Liability of partners are limited to the extent of their contributions to LLP
</td>
</tr>
<tr>
<td>
8
</td>
<td>
Principal agent relationship
</td>
<td>
Partners are the agents of the firm and of each other.
</td>
<td>
Partners are agents of the firm only and not of other partners.
</td>
</tr>
<tr>
<td>
9
</td>
<td>
Ownership of Assets
</td>
<td>
Partnership firm can not own any assets.
</td>
<td>
As the LLP is the separate legal entity, it can own assets.
</td>
</tr>
</tbody>
</table>
If you want to form an ordinary Partnership, there is no  need for  registration. Individuals can do business  without registering the Partnership. So if you want to form a Partnership, go ahead and form a partnership business without the burden of registration the major concerns of people is about proceedings and documentations. People choose to form a simple partnership because they do not want the long legal proceedings  and regulations that come along with forming a LLP.Don’t worry, the complexity is slightly overrated. Formation of Partnership is definitely easier from a regulatory point of view but all the basic procedures – getting a Service Tax / VAT registration, getting a PAN & TAN Card, opening a fresh bank account and getting an IEC still have to be complied with, even if you start as a simple Partnership. And if your income is above the taxable limit, you need to file tax returns irrespective of whether you are a simple Partnership or  LLP.

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Tutorial-2 Major difference between Ordinary Partnership and LLP are as follows: