Can a llp be a partner in a partnership firm?


Can a LLP become a partner in a partnership firm?

Are there any specific provisions allowing it or not allowing it to do so??

If it can join a partnership firm what will be the status of its liability?? 

 
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Chief Manager(Law)

A partnership firm cannot be a partner of another firm on the logic that the partnership firm does not have a distinct and separate identity as a legal person. Registration of an LLP does not create a corporate identity of the firm [juristic person], it only gives its partners immunity from being personally liable. 

 
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But sir, isn't an LLP a Body Corporate, and a Body corporate can be a partner. So why can't an LLP?

 
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But sir, isn't an LLP a Body Corporate, and a Body corporate can be a partner. So why can't an LLP?

 
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Chief Manager(Law)

You are right. However the liability of partners of a firm cannot be limited. It is therefore an open question as follows:

Can two LLPs form a firm under Indian partnership Act? What about personal liability of each partner? Can it be limited?

Section 25 of the Partnership Act stipulates that :Every partner is liable, jointly with all the other partners and also severally, for all acts of the firm done while he is a partner. Under section 49 of the Partnership Act, each partner is also personally liable to the debts of the firm. Hence, in my view the liability of any partner cannot be limited, as in the case of LLP if an LLP were to become a partner in a firm.

 
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