A limited company (LC) is a general form of incorporation that limits the amount of liability undertaken by the company’s shareholders. It refers to a legal structure that ensures that the liability of company members or subscribers is limited to their stake in the company by way of investments or commitments.

An LLP is a hybrid form of organisation having features of a partnership firm under the Partnership Act, 1932 and a company under the Companies Act, 1956/2013. It is a body corporate with separate legal entity from its partners. The mutual rights and duties of the partners of an LLP are governed by LLP Agreement. LLP is liable to the extent of its assets.  Partner’s liability is limited to the extent of agreed contribution (capital) in the LLP Agreement.