Basis Limited liability partnership Limited liability Company 1.Regulating Act The LLP Act,2008. The Companies Act,2013 2.Members/Partners The persons who contributes to The persons who invest the LLP are known as partners of the money in the shares are known LLP. as members of the company 3.Internal governance structure The internal governance The internal governance structure of a LLP is governed by structure of a company is agreement between the partners regulated by statute (I.e., Companies Act,2013) 4.Name Name of the LLP to contain the Name of the public company to word Liability contain the word “Limited “limited”and partnership”or LLP as suffix. Private company to contain the word limited suffix. “Private “as 5.Number of members/partners Minimum-2members The Comp Private company Minimum -2 members Maximum-No such limit on the Maximum- 200 members Public members in the Act .The company: members of the LLP can be individuals/or boby corporate Minimum-7members through the nominees. Maximum such limit on the –No members Members can be organizations,trusts,another business form or Anies Act,2013 6.Liability of members/partners Liability of a partner is limited to Liability of a members is limited the extent of agreed to the amount unpaid on the contribution except in case of shares held by them. willful fraud. 7.Management The business of the LLP is The affairs of the company are managed by the partner managed by board of directors including the designated partner. elected by the shareholders. 8.AGM No requirement of AGM AGM of Shareholders Mandatory
Basis Limited liability partnership Limited liability Company 1.Regulating Act The LLP Act,2008. The Companies Act,2013 2.Members/Partners The persons who contributes to LLP are known as partners of the LLP. The persons who invest the money in the shares are known as members of the company 3.Internal governance structure The internal governance structure of a LLP is governed by agreement between the partners The internal governance structure of a company is regulated by statute (I.e., Companies Act,2013) 4.Name Name of the LLP to contain the word “Limited Liability partnership”or LLP as suffix. Name of the public company to contain the word “limited”and Private company to contain the word “Private limited “as suffix. 5.Number of members/partners 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. The Comp Private company Minimum -2 members Maximum- 200 members Public company: Minimum-7members Maximum –No such limit on the members Members can be organizations,trusts,another business form or Anies Act,2013 6.Liability of members/partners Liability of a partner is limited to the extent of agreed contribution except in case of willful fraud. Liability of a members is limited to the amount unpaid on the shares held by them. 7.Management The business of the LLP is managed by the partner including the designated partner. The affairs of the company are managed by board of directors elected by the shareholders. 8.AGM No requirement of AGM AGM of Shareholders Mandatory
DIFFERENCE_BETWEEN_LLP_AND_LLC_636764290624021889.docx