Basics of LLP (Limited Liability Partnership Firm)

LLP is a form of Partnership Business in which the partners have limited liabilities. The major difference between LLP and Partnership are :

• Liability

An LLP has limited liability of partners which means the partner’s responsibility is limited to the capital he contributed and in case of a future loss, his personal assets are safe.

•  Procedure

Step 1: Obtain all  Partners DSC (Digital Signature Certificate)

Step 2: Apply for DIN (Director Identification Number)

Step 3: Apply for Name Approval

Step 4: Incorporation of LLP

Step 5: File LLP Agreement

Basics of Partnership Firms

Partnership Firm Consists of two or more people who combine their resources to form a business and agree to share risks, profits and losses.

• Procedure

Step 1: Choosing the Name of the Business

Step 2: Prepare Partnership Deed

Step 3: Apply for Pan Number

Step 4: Submission of Registration Applications (In case of Registered Partnership Deed)

Step 5: The Approval and Issuance of the Registration Certificate (In case of Registered Partnership Deed)

Basics of Sole Proprietary Firms

A Sole Proprietorship is an enterprise owned exclusively by one natural person and in which there is no legal distinction between the owner and business entity.

• Procedure

Step 1: Open the Bank Account in the Name of  Business

Step 2: Obtain Udyog Aadhar , if required

Step 3: Register Under GST , if required