FORMS OF ASSOCIATION

Propertiership Firm

The definition of a Sole Proprietorship is: A business enterprise exclusively owned, managed and controlled by a single person with all authority, responsibility and risk.

The main features are:

• Single Ownership: 
• No sharing of profit & loss: 
• Low capital: 
• One-man control: 
• Unlimited Liability: 
• Almost no legal formalities:  

Partnership Firms

Partnership Firm are governed by Indian Contract Act 1872 and Indian Partnership Act 1932

• Two or more members, number not to exceed 10 in case of “banking business” and 20 in case of “other business”.
• Partnership agreement:
• Lawful business:
• Sharing of profits
• Unlimited liability
• Voluntary registration
• No separate legal existence
• Restriction on transfer of interest
• Continuity of business

Limited Liability Partnership

A corporate business vehicle that enables professional expertise and entrepreneurial initiative to combine and operate in flexible, innovative and efficient manner, providing benefits of limited liability while allowing its members the flexibility for organizing their internal structure as a partnership.

• Generating DPIN 
• Generating Digital Signature
• Finalizing application and Reservation of Name
• Registration of LLP   
• Filing of LLP agreement (Form-3) and Partners’ details (Form-4)