Limited Liability Partnership Registration is a combination of company and partnership firm it has the features of both the business entities. In India LLP is a more popular format of business for startups because it has limited liabilities and the formalities of the compliances are less in comparison to the private limited company or public limited company. The LLP has partners and designated partners instead of shareholders and directors, the partners and designated partners invest funds in the LLP, manage the business and hold the position like a director in the company. But the designated partner or partner are different from each other they don’t act the same in the LLP, they have different roles and positions in the LLP and the differences are as follows:
| Particulars | Partner | Designated Partner |
|---|---|---|
Limit In LLP | There is no minimum or maximum limit on the Partners in LLP | Minimum 2 Designated Partners are required in LLP but there is no maximum limit of designated partners |
Person | Any person whether individual or artificial person can be the partner.
Artificial persons mean Company, partnership, other body corporates | Designated partners can only be an individual person |
DPIN | No DPIN is allotted to the partners of the LLP | Designated Partner Identification Number (DPIN) is an identification number that is allotted to the designated partners of the LLP |
Signing Authority | Apart from signing the LLP agreement, the partners don’t have authority to sign the forms or resolution | Only Designated partners have the authority to sign the forms and resolutions |
Liabilities on Penalties | The partners are not liable for any non-compliance or any default | In case of non-compliance or in case of any default the designated partner will be liable for the penalties or other consequence |
Accountability | Partner’s accountability is always less than designated partners in all aspects. | Designated partner has more accountability for compliances, regulations along with the day to day activities of LLP operations |
Residency | Currently, there is no restriction on the foreign resident partner in LLP | There is no maximum limit for the designated partner in LLP but at least one should be an Indian resident |
There is no major difference between the partner or designated partner although at the time of LLP registration minimum of 2 designated partners are required but there is no minimum partners requirement. The duties, rights and liabilities of the designated partner or partner are mentioned in the LLP agreement.
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