Distinction between Limited Liability Partnership (LLP) and a Company

  1. A basic difference between an LLP and a company lies in that the internal governance structure of a company is regulated by statute (i.e. Companies Act) whereas for an LLP it would be by a contractual agreement between partners.
  2. The management-ownership divide inherent in a company is not there in a limited liability partnership.
  3. LLP have more flexibility as compared to a company.
  4. LLP have lesser compliance requirements as compared to a company.