LLP- A Hybrid

composition of
company and
partnership
firm
 MEANING AND SIGNIFICANCE

● LLP stands for Limited Liability Partnership

● LLP is a —

A.”body corporate “ formed and incorporated under LLP ACT

B. legal entity from its partners and has perpetual succession (sec3(1))

● Two or more partners are rwequired to form an LLP. Any individual or a body corporate can be a
partner in a LLP

● In case if individual is a partner, he should not be :

○ Found to be of unsound mind; or

○ An undischarged insolvent; or
○ A person who has applied to be adjudicated as insolvent and the application is pending
 LLP – Key Features
● Hybrid form of business entity combining advantages of partners firm & corporate entity

● Separate legal entity

● Perpetual succession

● Various tax advantages as compared to firm & company

● Partners are agent of LLP and not of other partners

● Change in partners does not impact LLP’s existence ,rights or liabilities

● Liability of partners limited baring certain circumstances

● LLP itself will be liable for the full extent of its assets

● Allows the partners the flexibility of organising their internal structure

Parameters Company LLP Partnership Firm

Limited Liabilities
Statute Companies Act, 1956 Partnership Act, 1932
Partnership Act, 2008

Must with Ministry of Must with Ministry of Optional with the registrar
Registration
Corporate Affairs Corporate Affairs of the firm

Partnership deed and in

Memorandum of Mutual agreement among
the absence of this deed
Constitution Association and Articles of the partners or Schedule I
U/S 13 of the Partnership
Association of the LLP Act, 2008
Act, 1932

Has a separate artificial Has a separate legal

Status Not a separate legal entity
juridical legal personality personality

Director identification Designated partners

Identification number Not required
number identification number

Minimum 2 and maximum

50 for private limited Minimum two partners and Minimum 2, maximum 10
Number of owners company & minimum 7 and no ceiling for maximum for banking firm and 20 for
no ceiling in maximum for number of partners others
public limited company
 May pay salaries or dividend out LLP agreement should govern Partnership deed should govern
Profit
of divisible profit this issue this issue

Exemption for small LLPs with

turnover less than Rs. 40 lakh
Audit Mandatory Not mandatory
and capital less than Rs. 25
lakh

Taxable as a separate entity but Taxable as a separate entity but

the profit earned from the firm the profit earned from the firm
Taxation Taxable as a separate entity
by partners are exempted from by partners are exempted from
tax tax

Accounts to be filed with ROC

Annual
though disclosure requirement
accounts and Accounts to be filed with ROC Not required to be filed
is lesser than that of the
return
company.

E-filing Mandatory Mandatory No required

Unlisted company and private

LLPs can also be converted into It can be converted into an LLP
Conversion limited company can be
limited company or into a company
converted into an LLP
 DIFFERENCE
Company
● Legal entity that is separate from
its owners
● Shareholders do not participate in
management and receive dividends
and capital gain
● Companies are taxed separately
● Shareholders in company have
limited liability
● They are managed by board of
directors
Partnership
● Type of business structure in which
two or more individuals work
together to run a business
● Partners share management
responsibilities and profits/losses
● Partnerships are not taxed as a
separate entity
● Partners are personally liable for
partnerships debt
● They are managed by the partners
themselves
Similarities between LLP AND COMPANY

● Separate legal entity: Both of them have separate legal entities. That means
Private Limited Company or LLP is treated as a different individual in the eyes of
law.
● Benefits on taxes (taxation): To both types of business structures tax benefits are
given. The tax benefits would be 30% of the profits.
● Limited Liability: In the case of Private Limited Company and LLP, the liabilities of
the partners would be limited.
● Registration Process: Pvt Ltd registration and LLP registration, Both types of
businesses are required to be registered with the Ministry of Corporate Affairs.
 Monthly strategy review meeting

01 02
Risks Assumptions
Jupiter is a gas giant Venus has a nice name,
and the biggest planet but is a very hot place

RAID
03 04
Issues Dependencies
Mercury is the closest Pluto is considered a
planet to the Sun dwarf planet
Similarities between LLP & PARTNERSHIP
Monthly strategy review meeting
30% 20%

Mars Jupiter
Despite being red, Jupiter is the
Mars is cold 50 % biggest planet

Mercury
It is the closest
planet to the Sun
Monthly strategy review meeting
Actions Purpose People Process
Jupiter is a gas Neptune is the Ceres is located
Action 1 giant and the farthest planet in the main
biggest planet from the Sun asteroid belt

Mercury is the Despite being red, Earth is the

Action 2 closest planet to Mars is a very planet that
the Sun cold place harbors life

Venus has a Pluto is The Moon is a

Action 3 beautiful name, considered a natural satellite
but is hot dwarf planet of the Earth
 Monthly strategy review meeting
Jupiter is a gas Mercury is the
giant and the
biggest planet
1 Plan 2 smallest planet in
the Solar System

Follow up Set up

Despite being red, Neptune is the

Mars is actually a
cold place
4 Run 3 farthest planet
from the Sun
 Monthly strategy review meeting
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Task 1

Task 2

Task 3

50% 25% 75%

Mars Mercury Jupiter
Despite being red, It is the closest Jupiter is the
Mars is cold planet to the Sun biggest planet
Monthly strategy review meeting

Mars Venus
Despite being red, Venus has a beautiful
Mars is actually a cold name and is the
place. It's full of iron second planet from
oxide dust the Sun

Earth Saturn
Earth is the third Saturn is a gas giant
planet from the Sun and has several rings.
and the only one that It's composed mostly
harbors life of hydrogen
Monthly strategy review meeting
Team A Team B Team C Team D
Mercury $1,939 $1,231 $4,546 $1,213

Mars $3,435 $1,876 $5,654 $1,765

Saturn $2,321 $1,554 $1,453 $1,334

Venus $1,231 $1,939 $1,213 $3,435

Jupiter $1,876 $3,435 $1,765 $2,321

Earth $1,554 $2,321 $1,334 $1,231

Moon $1,213 $1,939 $1,543 $1,876

 Monthly strategy review meeting
Phase 1 Phase 3 Phase 5
Phase 2 Phase 4

Purpose Agenda Guests

Jupiter is the Venus has a Despite being
biggest planet Outcome nice name, but Speakers red, Mars is a
of them all Mercury is the is a hot place Pluto is very cold place
closest planet to considered a
the Sun dwarf planet
 Monthly strategy review meeting

20% 10% 30% 40%

Strategy Activities Finances Perform

Mercury is the Despite being red, Jupiter is the Saturn is the ringed
smallest planet Mars is cold biggest planet gas giant
Monthly strategy review meeting

Office 1
04:00 PM
Jupiter is the biggest
planet of them all

Office 2
09:00 AM
Venus has extremely
high temperatures
 Monthly strategy review meeting
Strategy

Team 1 Team 2

Mercury Mars Jupiter Saturn

Mercury is the Despite being red, Jupiter is the Saturn is a gas
smallest planet Mars is cold biggest planet giant with rings
 Monthly strategy review meeting

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Goal Date Manager Progress

Mercury is the
Mar 15 Vincenzo Loggia In progress
smallest planet

Jupiter is the biggest

Jul 14 Nicole Frías In progress
planet of them all

Despite being red,

Oct 20 Carter Donaldson Completed
Mars is a cold place
 Monthly strategy review meeting
1 2

Problem Purposes Solution

Jupiter Mercury Venus Pluto

Jupiter is a gas Mercury is the Venus has a nice Pluto is
giant and the closest planet to name, but is a considered a
biggest planet the Sun very hot place dwarf planet
 CONTENTS
1. Meaning and Significance

2. Key features

3. Difference between
○ partnership & company
○ partnership & LLP
○ company & LLP

4. Similarities between
 Monthly strategy review meeting

Team review
Mercury is the closest
planet to the Sun and
the smallest one of all
the planets in the Solar
System. This planet's
name has nothing to do
with the liquid metal

30% 40% 90% 60% 80%

Follow the link in the graph to modify its data and then paste the new one here. For more info, click here
 Monthly strategy review meeting
Team A
Jupiter is the biggest
planet of them all

Team B
Venus has a nice name,
but is a hot place

Follow the link in the graph to modify its data and then paste the new one here. For more info, click here
 Monthly strategy review meeting
Monthly review
Jupiter is a gas giant and the
biggest planet of them all

Revenue 32%

Expenses 29%

Follow the link in the graph to modify its data and then paste the new one here. For more info, click here
 Monthly strategy review meeting
Jupiter is the
Profit biggest planet Total $230,000

90%
80%
70%
80%

Follow the link in the graph to modify its data and then paste the new one here. For more info, click here
Monthly strategy review meeting
Monthly review
Mercury is the closest planet to the Sun $3,000

Venus has a very beautiful name, but is hot $5,000

Jupiter is a gas giant named after the Roman god $14,000

Total revenue $22,000

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