Comparison Table Between Partnership, LLP & Company
| Partnership Structure
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Limited Liability Partnership (“LLP”) Structure | Company Structure | |
| Tax management | Partnership structure allows channelling of losses in joint venture to set off profits of parent companies for tax purposes
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Ditto as Partnership | Does not allow channelling of losses for tax purposes |
| Statutory requirements, formalities and procedures
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Less statutory requirements, formalities and procedures to comply with, hence less costly to set up and manage
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Ditto as Partnership | More statutory requirements, formalities and procedures to comply with, hence more costly to set up and manage |
| Liability | Each partner in the joint venture is legally liable to the full extent for any debt incurred or default committed by any joint venture partner on behalf of the joint venture
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The partners of the LLP have limited liability | The members of the company have limited liability |
| Integrated vs. non-integrated operational structure | Usually associated with a non-integrated operational structure
More appropriate where the project work can be divided into discrete portions More appropriate where parties to the joint venture complement resources and expertise of each other
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Ditto as Partnership | Usually associated with an integrated operational structure
More appropriate where the project work is complex and would require a highly structured and authoritative central management
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| Raising of capital | Cannot raise capital from the public | Ditto as Partnership | Possible to raise capital by way of public subscription of shares
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| Management | No central management | Ditto as Partnership | Board of directors of the company operate as a central management
Statutory and common law duties on directors – conflict of interest issues
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