What is the difference between a partnership and an LLP?

Name: Vijay R Singh & Co.
Address: Office No. 4, Vishal CHSL, D Wing, Sir Mathuradas Vasanji Road, Azad Nagar, Opp. Andheri Gymkhana, Andheri East, Maharashtra, 400069, IN
Telephone: +91 98607 23959

CA Vijay R Singh, FCA
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W

Short answerA traditional partnership firm has unlimited liability — partners are personally liable for the firm’s debts — and isn’t a separate legal entity. An LLP gives limited liability and a separate identity, with only slightly more compliance. For most, an LLP is the safer modern choice.

Partnership: unlimited liability

Partners’ personal assets are exposed, and the firm isn’t separate from the partners.

LLP: limited, separate entity

Limited liability and perpetual existence, with MCA filings (Form 8/11).

NRI Taxation

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This answer is general information for NRIs, not tax advice. Tax rates, thresholds and forms change with each Finance Act — please confirm the current position for your own facts, or speak to us, before acting.