Q. What is the difference between traditional Partnership registration and Limited liability Partnership (LLP) in India?

by Paras Mehra 1.63K

Here is the outlined difference between the traditional partnership and LLP:

Traditional Partnership	Limited Liability Partnership
It is old form of business and partnerships are registered under Indian partnership Act, 1932.	It is the latest form of partnership which is registered under limited Liability Partnership Act, 2008.
Traditional partnership risk of unlimited liability and hence personal assets are not safe.	Its offers the protection to personal assets by limiting the liability.
Name of the firm is not secure, anyone can open on the same name.	Once registered with the name, no one shall be able to register with the similar name.
There is no yearly compliance.	There is a requirement for annual filing and any delay leads to penalty of Rs.100 per day.