Incorporation and Registration

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Limited Liability Partnerships have gotten quite popular in the last few years. In this article, we will focus on the process and steps along with the elements essential for the incorporation of an LLP (limited liability partnership). The guidelines are provided by the Limited Liability Partnership Act (LLP Act), 2008.

There are various advantage of Incorporating LLP.

A partnership firm is an organization which is formed with two or more persons to run a business with a view to earn profit. Each member of such a group is known as partner and collectively known as partnership firm. These firms are governed by the Indian Partnership Act, 1932.

Advantages of Partnership Firm. Easy Formation : Formation of Partnership Firm is easy and not much legal formalities are involved in formation. Registration of Partnership Firm is not compulsory. So a Partnership Firm can start its business immediately after entering into Partnership Deed.

A business that legally has no separate existence from its owner. Income and losses are taxed on the individual's personal income tax return. The sole Proprietorship is the simplest business form under which one can operate a business. The sole Proprietorship is not a legal entity.

Sole Proprietorship have several advantages over other business entities. They are easy to form, and the owners enjoy sole control of the business profits. However, they also have disadvantages, the biggest of which being that the owner is personally liable for all business losses and liabilities.