Limited Liability partnership is a kind of partnership with a benefit of limited liability. It is the combination of Partnership firm and a company. LLP has a separate legal entity from the partners. Here partners are not liable for actions of other partners.
While public limited company is a company which can issue its shares to the public with a limited liability and called as publically held company. Further it can be listed company or unlisted on a stock exchange.
Here are some points which differs LLP from Public Limited Company.
- Act: LLP is regulated by Limited Liability Partnership Act 2008, while Public limited companies are regulated by Companies Act 2013.
- Partners/members: An LLP can be incorporated with 2 partners and can have unlimited partners and PLC can be incorporated with 3 directors and 7 members.
- Audit: In LLP audit is not mandatory upto certain limit while in PLC it is mandatory.
Meeting: Board meetings and general meetings are not mandatory in LLP while in PLC it is mandatory.
- Shares: LLP cannot issue shares to anyone while PLC can issue its shares to anyone and it can be traded.
- Compliances: Public companies have more compliance as compared to LLP’s.