Difference Between Proprietorship and Partnership Firm in India: Costs, Compliance & Legal Structure Explained
Difference Between Proprietorship and Partnership in India When starting a business in India, selecting the right structure is crucial. For small businesses and entrepreneurs, two common forms are Sole Proprietorship and Partnership Firm. Each structure has unique implications for taxation, compliance, liability, and scalability. In this article, we explain the difference between proprietorship and partnership, compare their cost of incorporation, ease of compliance, and also cover modern alternatives like One Person Company (OPC) and Limited Liability Partnership (LLP) to [...]
LLP Rules 2009 Explained: Key Compliance Provisions for Limited Liability Partnerships
Understanding the LLP Rules 2009: A Comprehensive Guide for Businesses The Limited Liability Partnership Rules, 2009 (LLP Rules 2009) lay down the legal procedures and operational framework for Limited Liability Partnerships (LLPs) in India. Enacted under the Limited Liability Partnership Act, 2008, these rules ensure that LLPs maintain legal compliance from incorporation to dissolution. Whether you're setting up an LLP, managing regulatory filings, or advising clients, understanding these rules is essential. This article demystifies the LLP Rules 2009 in [...]
What is Rule 16(2) of LLP Rules? Additional Address for LLP
Rule 16(2) of LLP Rules: Detailed Explanation for Indian LLPs A Limited Liability Partnership (LLP) in India must maintain a registered office address as per Section 13 of the LLP Act, 2008. However, businesses often expand, change their mode of operation, or open satellite offices. In such cases, they may require a second address for receiving official documents. That’s where Rule 16(2) of LLP Rules, 2009 becomes relevant. It provides LLPs the flexibility to declare an additional address for [...]
Salient Features of Limited Liability Partnership (LLP) in India
Understanding the Salient Features of Limited Liability Partnership (LLP) If you're planning to start a business or restructure your existing one, understanding the salient features of Limited Liability Partnership (LLP) is essential. Under Indian law, LLP offers a perfect blend of flexibility and legal protection, making it a preferred choice for many entrepreneurs and professionals. Introduced through the Limited Liability Partnership Act, 2008, LLPs combine the operational efficiency of a partnership with the liability protection of a company. This [...]
How Many Partners Can an LLP Have in India? No Upper Limit Explained
The Maximum Number of Partners LLP Can Have Is — All You Need to Know Choosing the right business structure is crucial for long-term success. Among the various options available in India, the Limited Liability Partnership (LLP) has become increasingly popular. It offers the benefits of a company (like limited liability) while preserving the flexibility of a traditional partnership. One of the most frequently asked questions is:“What is the maximum number of partners LLP can have?” Let’s understand the [...]
LLP Closure Procedure in India – A Step-by-Step Guide
LLP Closure Procedure in India – A Step-by-Step Guide A Limited Liability Partnership (LLP) is a flexible business structure that combines the benefits of a partnership with the advantages of limited liability. However, when an LLP becomes inactive, non-operational, or financially unviable, it's important to formally close it in compliance with legal requirements. Failure to do so may lead to hefty penalties, late fees, and continuous compliance obligations. This article explains the LLP closure procedure in India, including strike-off [...]
