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SETTING UP A SMALL BUSINESS? LLP IS THE WAY TO GO! VakilSearch.com


Setting Up A Small Business? Setting up a business entity resulting from a collaboration among multiple parties has become a common scenario in the present time. Professionals, often friends, peers, and acquaintances, join hands to develop and market a product or service to create an alternate and sustainable source of income owing to the volatile job market. While the general idea behind the organization is often clear among partners, it is often confusing to decide whether to register the company as an LLP or a Private Limited firm.

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Limited Liability Partnership: LLP or Limited Liability Partnership Firm registration was an instant hit at the time of its inception in 2009. It is governed by the 2008 Limited Liability Partnership Act that combines the benefits of a Limited Liability company with the benefits of a partnership. LLP has made it easy to establish an easily maintainable business and provides the owners with the benefit of limited liability.


Benefits of LLP Registration: Partnership registration in the form of LLP has the core benefit of limited liability that ascertains that the members are only liable for a part of the debt incurred. This makes it different from general partnership and proprietorship where if the business goes bankrupt the assets of partners and directors come in jeopardy.

Independent Legal Entity – An LLP organization is in itself independent from the partners who can sue each other in case of a dispute. Even with the absence of the partnership deed, an LLP has uninterrupted existence even if the partners leave. Terms of dissolution are to be agreed upon beforehand to dissolve the firm. Flexible – It is easy to incorporate a new member among the partners owing to the ease of transferring ownership in the LLP. Owner Remains to be the Manager – In an LLP firm, the owner and the director are the same, unlike a Pvt Ltd. company where the shareholder and director can be different.


Limited Liability Partnership Firm Registration Online: LLP firms can be easily registered online without the need for Partnership deed format, which is essential for registering a general partnership. Following are the steps and requirements for LLP registration: Basic identification and income documents of the partners involved Fill the online registration form with accurate information Apply for partner’s DIN and Digital Signature Prepare all the required legal documentation Apply for the proposed name of the LLP being registered Get all the documentation verified from respective authorities and government departments File the incorporation documents with the Registrar of Companies Acquire the incorporation certificate of LLP


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Setting Up A Small Business?  

Setting up a business entity resulting from a collaboration among multiple parties has become a common scenario in the present time. Profess...

Setting Up A Small Business?  

Setting up a business entity resulting from a collaboration among multiple parties has become a common scenario in the present time. Profess...

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