## LLP vs Limited Liability Company
| Basis | LLP | Limited Company |
|---|---|---|
| Regulating Act | LLP Act, 2008 | Companies Act, 2013 |
| Contributors called | Partners | Members (shareholders) |
| Internal Governance | Governed by LLP Agreement (contractual) | Regulated by Statute (Companies Act) |
| Name Suffix | 'LLP' / 'Limited Liability Partnership' | 'Private Limited' / 'Limited' |
| Number of Partners/Members | Min: 2; Max: No limit | Pvt Co: Min 2, Max 200<br>Public Co: Min 7, Max No limit |
| Liability | To extent of agreed contribution | Limited to unpaid amount on shares |
| Management | Managed by Designated Partners | Managed by Board of Directors |
| Min. No. of Directors / DPs | Min 2 Designated Partners | Pvt Co: 2; Public Co: 3 directors |
### Key Conceptual Differences
1. Flexibility: LLP's internal governance is agreement-based → highly customisable. Company's governance is statute-driven → standardised.
2. Capital: No share capital concept in LLP; partner contributions need not be in cash.
3. No board / committee structure is mandated by LLP Act (other than DPs); company has a mandatory Board.
4. Compliance burden: LLP has lighter compliance (e.g., audit only if turnover/contribution thresholds crossed) compared to a Company.
### Memory Anchor — 'C-G-M' Triangle
Contribute (LLP) vs Subscribe (Co.); Governed by Agreement (LLP) vs Statute (Co.); Managed by DPs (LLP) vs BoD (Co.).