Limited Liability Partnership provides separate legal personality and limited partner liability, unlike traditional partnership firms with joint unlimited liability.
An LLP is a statutory legal entity with separate legal personality: it can own property, contract in its name, limits partner liability to capital contribution, requires registration with the Registrar of Companies, designated partners with prescribed identification and digital signature credentials, statutory filing of accounts and returns, audit obligations when thresholds apply, perpetual succession, ability to admit foreign participants, and statutory routes for amalgamation, compromise and dissolution. A Partnership firm is contractual, may be unregistered, lacks separate personality, exposes partners to unlimited joint liability, cannot hold property in the firm's name, is managed by partners as agents, and follows different registration, audit and dissolution rules. (AI Summary)