Classification of Partnership

In general terms the only visible Classification of Partnership Registration is :

LLPs are new in India but are quite famous now-a-days. LLP’s are getting more popular than the general traditional partnership. They are quite different from general partnerships.

General Partnerships

General partnerships are very common. They are what common people mean by partnerships, where the liabilities of the partners is unlimited and joint, partners are entitled to participate in management, registration of partnership is not mandatory and partnership is affected by death, insolvency or lunacy of the partners. General partnerships are very old and are governed under the Partnerships act, 1932.

Limited Liability Partnership(LLP)

LLP, the modern form a partnership is a hybrid of both a company and a partnership. LLP came in India in the year 2008 with the LLP act. In LLP, the partners have limited liability with separate legal entity. LLP are required to register themselves. LLP combines the features of a company into the partnership.LLP registration in India is governed under The LLP Act,2008(complete LLP act provisions). It is regulated by MCA (Ministry of corporate affairs). LLP is registered with the ROC (Registrar of Companies).