Distinguish between the following forms of business- LLP and Companies.

Basis LLP Limited Liability Company 1. Regulating Act The Limited Liability Partnership Act, 2008. The Companies Act, 2013. 2. Members/ Partners The persons who contribute 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 contract 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 Pvt. Co. to contain the word "Private limited" as suffix. 5. No. of members/ partners Minimum - 2 members Maximum – No such limit on the members in the Act. The members of the LLP can be individuals/or body corporate through the nominees. Private company: Minimum - 2 members Maximum 200 members Public company: Minimum - 7 members Maximum - No such limit on the members. Members can be organizations, trusts, another business form or individuals. 6. Liability of members/ partners Liability of a partners is limited to the extent of agreed contribution in case of intention is fraud. Liability of a member is limited to the amount unpaid on the shares held by them. 7. Management The business of the company is managed by the partners including the designated partners authorized in the agreement. The affairs of the company are managed by board of directors elected by the shareholders. 8. Minimum number of directors/ designated partners Minimum 2 designated partners Pvt. Co. - 2 directors Public co. - 3 directors