Particulars
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Partnership |
Company |
LLP |
Liability
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Unlimited, each partner is jointly and severally responsible for the act of any partner.
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Limited to the extent of the face value of the share.
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Limited to the extent of their contribution
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Creation
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Created by contract
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Created by Law
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Created by Law
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Governing Act
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Indian Partnership Act, 1932
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Company’s Act, 1956
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Limited Liability Act, 2008
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Legal Entity
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No Separate legal existence
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Separate legal entity
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Separate legal entity
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Cost of Incorporation
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Negligible
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Extremely High
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Economic
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Time Taken to incorporate
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1 week
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15-20 days
|
10 days
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Foreign Participation
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Not allowed
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allowed
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allowed
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Dissolution
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By mutual Consent
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By law
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By law
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Statutory Meeting
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Not Required
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Required under law
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No such requirement under the provisions of law.
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Applicability of Accounting Standards
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Not Applicable
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Applicable
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Relevant provisions for applicability of Accounting Standards have not been framed.
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Ownership and Management
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No distinction between ownership and management. The partners own and manage the firm.
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A distinction exists as the shareholders own the company but it is managed by the directors.
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No distinction between ownership and management. The partners own and manage the firm.
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Audit of Accounts
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Only Tax audits required as per law
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Companies have to get their accounts audited annually under the provisions of the companies act.
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LLPs whose turnover/ contribution crosses 40 Lakhs/ 25 Lakhs have to get their accounts audited.
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Whistle Blowers
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No such provision
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No such provision
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Provision has been made to provide protection to employees and partners who provide useful information during an investigation of fraud.
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