What is a Partnership Firm?

Today a Partnership business can be incorporated either by way of a Partnership firm or through a Limited Liability Partnership.

A Partnership is a business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in the Partnership Deed. It is owned, managed and controlled by an Association of People for profit. Partnerships firms are relatively easy to start and are prevalent amongst small and medium-sized businesses in the unorganized sectors. Partnership firms are created by drafting a Partnership deed amongst the Partners.

Whereas an LLP is a form of separate legal business entity that gives the benefits of limited liability but allows its members the flexibility of organizing their internal structure as a traditional partnership. It is governed by the Limited Liability Partnership Act, 2008. In LLP, unlike a company, the designated partner has a direct relationship between owner and management.

You will have a protection of a registered company; one partner will not be liable for any misconduct or negligence of another partner. LLP can operate not according to Company’s Act, 2013 but as per the LLP agreement formed at the time of its incorporation.

Steps for incorporation of Limited Liability Partnership in India:

1. Director Identification Number: Obtain a DIN for the Designated Partners of the LLP.
2. Name Reservation: File Form LLP-1 for Name Reservation. If the proposed name is acceptable, a name would be approved. Else, the form for name approval should be resubmitted.
3. LLP Incorporation: Filing of Form 2 for Incorporation and Subscription Document.
4. LLP Agreement: Drafting of the LLP
5. Filing of LLP Agreement: Filing of LLP Agreement under LLP Form-3

We at ebizfiling will make it easy for you to incorporate a Limited Liability Partnership at a nominal cost starting from Rs. 6,999/- or a Partnership firm at a nominal cost of 1599/- with an end to end support from our professional team.

About EbizFiling.com :

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