Difference between Company, Partnership & LLP

PARTICULARS	COMPANY	PARTNERSHIP	LLP
Meaning	A company refers to a company formed under companies act, 2013.	Partnership refers to an arrangement wherein two or more person agree to carry on a business and share profits & losses mutually.	Limited Liability Partnership is a form of business operation which combines the features of a partnership and a body corporate.
Governed By	Companies Act, 2013	Indian Partnership Act, 1932	Limited Liability Partnership Act, 2008
Registration	Mandatory	Optional	Mandatory
Charter document	MOA & AOA	Partnership deed	LLP Agreement
Liability	Limited to the amount required to be paid-up on each share.	Unlimited	Limited to capital contribution, except in case of fraud
Contractual capacity	It can sue and be sued in its name.	It cannot enter into contract in its name.	It can sue and be sued in its name.
Legal Status	It has a separate legal entity	Partners are collectively known as firm, so there is no separate legal entity.	It has a separate legal status.
Name of firm	To contain the following suffix: “Limited” in case of public company; or “Private Limited” in case of private company.	Any name	Name containing LLP as suffix
Maximum partners	Minimum 2 (two) members and maximum 50 (fifty) members in case of private company; and  Minimum 7 (seven) members in case of public company (no maximum limit)	20 partners	No limit
Minor	Minor cannot be a member	Minor can be a partner	Minor cannot be a partner
Property	Can be held in the name of the company.	Cannot be held in the name of firm	Can be held in the name of the LLP.
Perpetual Succession	Yes	No	Yes
Audit of accounts	Mandatory	Not mandatory	Mandatory, only if turnover and capital contribution overreaches 40 lakhs and 25 lakhs respectively
Relationship	Directors and under certain circumstances, the Key Managerial Personnel acts as the agents	Partners are agents of firm and other partners as well	Partners are agents of LLP only.
Transferability Of Shares	Shares can easily be transferred to another person. Share certificate is proof of ownership of shares held by the members.	·    Shares can be transferred to another person after obtaining the required consent from all the Partners in a Partnership. ·    Transferability of the partnership is a lengthy process. ·    Conversion of partnership to LLP or Private Limited Company is a burdensome process.	·         Shares can be easily transferred to another person after obtaining the required consent from all the Partners in an LLP. ·         The transferee cannot become partner automatically. ·         LLP cannot be converted back to the partnership but can be converted to Private Limited Company or Limited Company easily.
Compliance	Annual Returns are required to be filed with MCA.	No requirement of annual return filing	Mandatory to file the annual return to Ministry of Corporate Affairs (MCA)
Minutes	Required to be maintained as per Companies Act, 2013.	Not required	To be maintained: The proceedings of meetings of the Partners /Designated Partners are governed by the provisions of the LLP Agreement.
No. of partners required to obtain Digital Signatures	1	Nil	1
Dissolution	Can be voluntary or involuntary or by an order of the High Court or National Company Law Tribunal	Can be by agreement, mutual consent, insolvency, certain contingencies, and by court order	Can be voluntary or involuntary or by an order of the High Court or National Company Law Tribunal
Creditworthiness	Stringent Compliances and disclosures under various laws, ensures high degree of credit worthiness.	Creditworthiness is dependent upon goodwill and creditworthiness of its partners.	LLP enjoys higher creditworthiness than a Partnership but lesser than a Company.

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