Difference between General Partnership firm and Limited Liability Partnership
In businesses, the partnership is an association of two or more people, who agree to carry on the business together by combining their financial funds and managerial abilities and skills and share its profits and losses. The most used partnership types are General Partnership and Limited Liability Partnership (LLP) A General Partnership firm is registered by two or more persons by executing a partnership deed with each other. Even though this form of business is governed under the Indian Partnership Act 1932, the partners are at free will to decide on various terms pertaining to the share of profits and other related matters. In India normally all partnership firms are general partnerships. Limited Liability Partnership is an alternative business form that provides limited liability to the owners and is comparatively easy to manage and hassle-free. It is allowed under the Limited Liability Partnership Act, 2008. LLP is a unique hybrid combination of a limited and partnership