Private Company Registration In Moradabad
Public Company Registration In Moradabad
Nidhi Company Registration In Moradabad
NBFC Company Registration In Moradabad
Income Tax Returns In Moradabad
GST Registration In Moradabad
GST Returns In Moradabad
Digital Signature In Moradabad
ROC Filings In Moradabad
A sole proprietor business is the easiest business type to start and operate. A sole proprietorship is a type of unregistered business entity that is owned, managed and controlled by one person. Sole proprietorship's are one of the most common forms of business in India. Proprietorships are very easy to start and have very minimal regulatory compliance requirement for started and operating. You don't need to formally register your business with your state, like companies or LLPs do. A sole proprietorship, also known as the sole trader or simply a proprietorship, is a type of enterprise that is owned and run by one natural person and in which there is no legal distinction between the owner and the business entity. The owner is in direct control of all elements and is legally accountable for the finances of such business and this may include debts, loans, loss, etc One question that's often asked is the difference between a sole proprietor and an independent contractor. A small business can be both - a sole proprietor for the purpose of paying income taxes, and an independent contractor for the purpose of getting paid by companies for work However, after the startup phase, proprietorship's do not offer the promoter a host of benefits such as limited liability proprietorship, corporate status, separate legal entity, independent existence, transferability, perpetual existence - which are desirable features for any business. Therefore, proprietorship registration is suited only for unorganized, small businesses that will remain small and/or have a limited period of existence. The existence of a proprietorship must be established through tax registrations and other business registrations that a business is required to have as per the rules and regulations. For instance GST Registration can be obtained in the name of the Proprietor to establish that the Proprietor is operating a business as a sole proprietorship. Thus, all the registrations for a proprietorship would be in the name of the Proprietor, making the Proprietor personally liable for all the liabilities of the Proprietorship.
Partnership firms in India are governed by the Indian Partnership Act, 1932. While it is not compulsory to register your partnership firm as there are no penalties for non-registration, it is advisable since the following rights are denied to an unregistered firm: • A partner cannot file a suit in any court against the firm or other partners for the enforcement of any right arising from a contract or right conferred by the Partnership Act • A right arising from a contract cannot be enforced in any Court by or on behalf of your firm against any third party • Further, the firm or any of its partners cannot claim a set off (i.e. mutual adjustment of debts owed by the disputant parties to one another) or other proceedings in a dispute with a third party
A partnership firm can be registered whether at the time of its formation or even subsequently. You need to file an application with the Registrar of Firms of the area in which your business is located. Partnership firms is a very popular form of business in India. It is when two or more persons come together with a common objective to earn a profit. It cannot be formed by a single person. To form a partnership two or more persons are required to come together. All the persons who come together agree to share profit as well as losses in the equal ratio or predetermined ratio. All types of partnerships are governed under Indian partnership act of 1932.
1. Easy to form- Partnership firms is easy to form as well as to close without many formalities. It can be formed with an agreement and registration is also not mandatory for it. 2. More capital- As there are two or more partners, therefore, funds raised can be more. It gives an advantage over various other forms such as sole proprietorship where an amount of capital is limited. 3. Risk sharing- As per the provisions, the risk is shared by all the partners. The burden of losses doesn’t come on one individual. 4. Secrecy- Partnership firms is not required to publish its accounts which lead to the secrecy of its operations. Confidentiality of information is maintained.
1. Unlimited liability- One of the biggest demerits of a partnership is that its partners have unlimited liability. This means that personal assets or property of the partners may be used for paying companies debts. 2. Lack of continuity- Partnership comes to an end with the death, insolvency or retirement of any of its partner. This results in the lack of continuity. However, if the remaining partners want to continue with the business then they have to form a fresh agreement. 3. Conflicts- Possibility of conflicts always arises when two or more persons are involved. The difference in opinion or some issues may lead to disputes between partners. This comes in the way of a successful partnership. 4. Limited resources- Resources are limited as there is the restriction on the number of partners. As a resulting partnership, firms face problems in expansion beyond a certain size.
A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities.As the name suggests partners have limited liability in the company which means that personal assets of the partners are not used for paying off the debts of the company. Nowadays it has become very popular form of business as many entrepreneurs are opting this. There are a number of partners in the firm and hence they are not liable or responsible for others misconduct. Everyone is liable for their own acts. All limited liability partnership is governed under the limited liability partnership act of 2008. However in India LLP was introduced in April 2009. Limited liability partnerships are distinct from limited partnership in some countries, which may allow all LLP partners to have limited liability, while a limited partnership may require at least one unlimited partner and allow others to assume the role of a passive and limited liability investor. As a result, in these countries, the LLP is more suited for businesses in which all investors wish to take an active role in management. LLP has a separate legal entity, liable to the full extent of its assets, the liability of the partners would be limited to their agreed contribution in the LLP. Further, no partner would be liable on account of the independent or unauthorized actions of other partners, thus allowing individual partners to be shielded from joint liability created by another partner’s wrongful business decisions or misconduct.