Proprietorship, Partnership & LLP
What is Sole Proprietorship?
A Sole Proprietorship is a type of unregistered business entity that is owned, managed and controlled by one person. Sole Proprietorship is the most common form of business in India, used by most micro and small businesses operating in the unorganized sectors. So, it is ideal for small businesses and first-time Entrepreneurs who would like to get a taste for business.
Partnership Firm
A Partnership is a business structure in which two or more individuals manage and operate a business in accordance with the terms and goals set out in the Partnership Deed. Partnership registration is relatively easy and is prevalent among small and medium sized businesses in the unorganized sectors.
Limited Liability Partnership (LLP)
LLP was launched in India by way of the
Limited Liability Partnership Act, 2008.
The main edge of a Limited Liability
Partnership is one partner is not liable
for another partner's misconduct or
negligence. LLP is favoured by
Professionals, Micro and Small
businesses that are family-owned or
closely-held. LLP also gives limited
liability protection for the owners from
the debts of the LLP. Accordingly, all
partners in an LLP enjoy a kind of
limited liability protection for every
individual's protection within the
partnership, related to that of the
shareholders of a private limited
company
Registration Procedure
- Obtaining Digital Signature of designated partners.
- Apply for Director Identification Number of all the Partners.โ
- Get a Name Approval by filing LLP Run.
- Ends with word "LLP".
- Advisable to give two names for filing with preference order.
- Company Name Rules & Guidelines should be followed.
- LLP Incorporation E - Form Submission (FiLLiP) - Form for Incorporation of Limited Liability Partnership.
- Generation of Certificate of Incorporation (COI).โ
- LLP Agreement drafting and Filing with Registrar.
- PAN, TAN Number of LLP and Bank Account Opening.
