Here is a list of differences between a LLP and a Private Limited Company
- The basic difference between LLP and Private Limited Co is the governance structure. LLPs are governed by LLP Agreement executed between the partners whereas the Private Limited Company is governed by the Companies Act 2013.
- In a Private Limited Company, there is a separation of ownership and management via shareholders and directors, however, in LLP there is no such separation.
- LLP is more flexible as compared to private limited due to governance structure.
- LLP have lesser compliance than a private limited company
- There is no upper limit on the number of partners in LLP whereas in private limited there is an upper limit of 200 members
LLP cannot have access to securities markets or stock exchanges whereas private limited companies and public limited companies can have such access.