Author: nilkanthadvisory.com

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. What is Partnership Registration ? 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 PartnershipDeed. Partnership registration is relatively easy and is prevalent among small and medium sized businesses in the unorganized sectors. Partnership Registration is done through Legalraasta. For Partnership Registration, you must agree on a firm name and then establish a partnership deed. It is a document stating respective rights and obligations of the partners and to be valid it should be written and not oral. The terms of the Partnership Deed can be varied to suit the interests of the partners and can even be made contrary to the Indian Partnership Act, 1932 but if the Partnership Deed is silent on any point, then the provisions of the Act would apply. Why to Choose Partnership. Partnership registration is very easy. Partnership registration is inexpensive as compared to LLP. It has minimum compliance requirement. Need for Partnership Registration If you don’t register your Partnership : Partner Cannot sue firm: A partner in an unregistered partnership firm cannot sue the firm for enforcing any rights under the Indian Partnership Act, 1932. Cannot claim Setoff in a dispute with a third party. The firm cannot sue third parties whereas the third parties would be able to sue the firm irrespective of registration. Documents Required For Partnership Registration Statement in Form 1 with the prescribed fees Notarised True copy of the Partnership Deed Proof…

Limited Liability Partnership (LLP) Registration 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. Limited Liability partnership offers the benefit of limited liability to its owners and at the same time needs minimal maintenance. The owners of a private limited company have limited liability to creditors. In case of default, banks/creditors can only sell the company’s assets and not the personal assets of directors. An 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. Why to Choose LLP? Dual advantages- Company and a Partnership No partner will be responsible for other partner’s misconduct Cheaper to incorporate than a private limited company Limits the liabilities of its partners Eligibility for LLP Registration? Minimum 2 Partners (Age Should be Above 18 Year) No Minimum Capital Required At least one designated partner should be Indian resident DPIN For All partners Documents Required For LLP Registration? Copy of PAN Card of partners Passport size photograph of partners Copy of Aadhaar Card/ Voter identity card/ Driver’s license as address proof Electricity/ Water bill/ Telphone bill/ Latest bank statement as proof of Registered Office (Business Place) Copy of Sale Deed/Property Deed (If owned property) Landlord NOC (Format will be provided) Passport (in case of Foreign Nationals/ NRIs) Digital Signature Certificate Copy of Notarised Rental Agreement Copy of NOC from the property owner Why choose LLP Registration? It has a separate…

What is OPC Registration ? An OPC is the most modern form of business in India proposed by the Companies Act, 2013 and understand for a-One Person Company. A forward-thinking idea was launched which promotes the incorporation of micro-businesses and persons with entrepreneurial ideas and to give a boost to entrepreneurs who have high potential to begin their venture by permitting them to build a single person company. You can easily register one person company under the outlines of the companies Act 2013 and the laws thereto, where it was made viable for a single person company to work as a company without the complexity of having partners. This encourages more people to come forward to commence a business. The OPC is fit for small businesses where the turnover is not likely to cross Rs. 2 Crores. IN OPC Registration it’s important to note that the nominee or the director should be Indian Resident. One Person Companies are benefiting largely in developing the overall economy of India. More and more Entrepreneurs are coming up and commencing their business. By incorporation of OPC, the company can enjoy the benefits in banking point and are eligible for Banking loans, credits. So, if you want to start up your own business, you don’t have to worry about all the network and slow processes. Why to Choose OPC? The following is the eligibility guidelines for OPC Registration in India. Can have more than 1 directors, but the shareholder cannot be more than 1. Not affected by the death of a member or shift in ownership. Effortless to set up and maintain comparatively. Restricts the liabilities of its members Minimum Paperwork is needed. Can work as Stockbroker or Sub-broker Not multiple compliances No interference from any third party is seen Even no person is permitted…