Difference between Company and LLP

Category	Company	LLP
Prevailing Law	Companies are prevailed by Companies Act, 1956	Limited Liability Partnership are prevailed by ‘The Limited Liability Partnership Act, 2008 and various Rules made there under
Registration	Registration with Registrar of Companies required.	Registration with Registrar of LLP required.
Creation	Created by Law	Created by Law
Distinct entity	Is a separate legal entity under the Companies Act, 1956.	Is a separate legal entity under the Limited Liability Partnership Act, 2008.
Name of Entity	Name to contain 'Limited' in case of Public Company or 'Private Limited' in case of Private Company as suffix.	Name to contain 'Limited Liability Partnership' or 'LLP' as suffix.
Cost of Formation	Cost of formation is higher in comparison to LLP	comparatively much lesser than the cost of formation of Company
Perpetual Succession	It has perpetual succession and members may come and go.	It has perpetual succession and partners may come and go
Charter Document	Memorandum and Article of Association is the charter of the company which defines its scope of operation.	LLP Agreement is a charter of the LLP which denotes its scope of operation and rights and duties of the partners vis-à-vis LLP.
Formalities of Incorporation	Various eforms along the Memorandum & Articles of Association are filled with Registrar of Companies with prescribed fees	Various eForms and the LLP Agreement are filed with the Registrar of LLP along with the prescribed Fee.
Time line	It will take 15 days (approx.) to incorporate (inclusive of time taken to obtain DIN)	It will take 10 days (approx.) to incorporate (inclusive of time taken to obtain DPN)
Number of Members	2 to 50 members in case of Private Company and Minimum 7 members in case of Public Company.	Minimum 2 partners and their is no limitation of maximum number of partners.
Liability of Partners/Members	Generally limited to the amount required to be paid up on each share.	Limited, to the extent their contribution towards LLP, except in case of intentional fraud or wrongful act of omission or commission by the partner.
Tax Liability	Income of Company is Taxed at a Flat rate of 30% Plus surcharge as applicable.	Income of LLP is taxed at a Flat rate of 30% plus education cess as applicable.
Principal/Agent Relationship	The directors act as agents of the company and not of the members	Partners act as agents of LLP and not of the other partners.
Transfer / Inheritance of Rights	Ownership is easily transferable.	Regulations relating to transfer are governed by the LLP Agreement .
Transfer of Share / Partnership rights in case of death	In case of death of member, shares are transmitted to the legal heirs.	In case of death of a partner, the legal heirs have the right to get the refund of the capital contribution + share in accumulated profits, if any. Legal heirs will not become partners
Admission as partner / member	A person can become member by buying shares of a company.	A person can be admitted as a partner as per the LLP Agreement
Cessation as partner / member	A member / shareholder can cease to be a member by selling his shares.	A person can cease to be a partner as per the LLP Agreement or in absence of the same by giving 30 days prior notice to the LLP.
Requirement of Managerial Personnel for day to day administration	Directors are appointed to manage the business and other statutory compliances on behalf of the members.	Designated Partners are responsible for managing the day to day business and other statutory compliances.
Statutory Meetings	Board Meetings and General Meetings are required to conducted at appropriate time.	There is no provision in regard to holding of any meeting.
Maintenance of Minutes	The proceedings of meeting of the board of directors / shareholders are required to be recorded in minutes.	A LLP by agreement may decide to record the proceedings of meetings of the Partners/Designated Partners
Voting Rights	Voting rights are decided as per the number of shares held by the members.	Voting rights shall be as decided as per the terms of LLP Agreement.
Maintenance of Statutory Records	Required to maintain books of accounts, statutory registers, minutes etc.	Required to maintain books of accounts.
Annual Filing	Annual Financial Statement and Annual Return is required to be filed with the Registrar of Companies every year.	Annual Statement of accounts and Solvency & Annual Return is required to be filed with Registrar of LLP every year.
Share Certificate	Share Certificates are proof of ownership of shares held by the members in the Company	The ownership of the partners in the firm is evidenced by LLP Agreement.
Audit of accounts	Companies are required to get their accounts audited annually as per the provisions of the Companies Act, 1956,	All LLP except for those having turnover less than Rs.40 Lacs or Rs.25 Lacs contribution in any financial year are required to get their accounts audited annually as per the provisions of LLP Act 2008.
Credit Worthiness of organization	Will enjoy Comparatively higher creditworthiness from Partnership due to Stringent regulatory framework.