Difference Between Limited Liability

Partnership & Limited liability Company

Basis
1.Regulating Act
2.Members/Partners
3.Internal governance structure
4.Name
5.Number of members/partners
Limited liability partnership
The LLP Act,2008.
The persons who contributes to
LLP are known as partners of the
LLP.
The internal governance
structure of a LLP is governed by
agreement between the
partners
Name of the LLP to contain the
word “Limited Liability
partnership”or LLP as suffix.
Minimum-2members
Maximum-No such limit on the
members in the Act .The
members of the LLP can be
individuals/or boby corporate
through the nominees.
Limited liability Company
The Companies Act,2013
The persons who invest the
money in the shares are known
as members of the company
The internal governance
structure of a company is
regulated by statute (I.e.,
Companies Act,2013)
Name of the public company to
contain the word “limited”and
Private company to contain the
word “Private limited “as suffix.
The Comp Private company
Minimum -2 members
Maximum- 200 members Public
company:
Minimum-7members
Maximum –No such limit on the
members

6.Liability of members/partners Liability of a partner is limited to
the extent of agreed
contribution except in case of
willful fraud.
7.Management The business of the LLP is
managed by the partner
including the designated partner.
8.AGM No requirement of AGM
Members can be
organizations,trusts,another
business form or
Anies Act,2013
Liability of a members is limited
to the amount unpaid on the
shares held by them.
The affairs of the company are
managed by board of directors
elected by the shareholders.
AGM of Shareholders Mandatory