Partnership Act, 2008 and a Partnership Firm incorporated under the Indian Partnership

Your uncle's trading firm has run for thirty years on a handshake, a few pages of partnership deed and a bank account. Nobody filed a document with the government when it began, and partners have come and gone without a single form. Now picture a new LLP of the same size. It needs a filed incorporation document, a written agreement on record with the Registrar, named designated partners and a yearly statement of accounts. Why does one structure ask for so little paper and the other for so much? This topic compares the LLP and the firm from the inside: how each is formed, run, left and ended.

In two minutes

An LLP is born by registration, run by a written filed agreement with statutory default rules and designated partners, and ends only by winding up; a firm is born by contract, run by contract with default rules in the Partnership Act, and is usually dissolved by the events the Partnership Act lists.

The rest of this chapter

The full explanation, the cheat sheet, every previous-year question at every mark weight, the quiz and the answer skeletons are part of Contract – II on LexBlox Semester. Sign in to unlock the subject, or read Module 1 of Legal Language and Writing free.