A Company and an LLP are body corporate and legal entity. On other hand, an agency is contractual relationship between two parties.
Let’s first understand how a company and an LLP is different.
Where the company is most preferred structure for startups, an LLP is preferred by service based industry. LLP is basically combination of a company and partnership. It is more like an extended partnership with corporate features.
With flexibility of partnership, the LLP is benefited with strong internal control as per LLP Agreement and lower compliance requirements. However, when it comes to equity funds raising, a company structure is preferred owing to its structural characteristics and strong compliance environment.
The other difference is about its managing authorities. In LLP, the partners are both owners and managing authorities. But, in a company, those could be different. The Board of Directors (BoD) is the managing authorities that is responsible for its day-to-day operations and activities. In company, there is dual control in terms of BoD and shareholders as owners.
Learn what would work best for you? LLP or Private Limited Company. Reading this, you will know which of these organisation structures is beneficial for your business and how this structure will be advantageous for you.
Agency:
Agency is a fiduciary relationship between two parties, where one is pricipal and the other is agent. The principal authorises the agent to perform acts on behalf of the principal and performs the duties entrusted by the principal. Here, the principal is bound by the acts of the agent.
For example, in company, directors are the agent of the company as they are entrusted to perform certain duties assigned by the company. Another example can be an attorney or a broker who represents you in specified situations. You are bound by their actions, omissions and decisions.
I hope this clears your query and is helpful.