Entrepreneurship Lesson 3

How to decide the type of Business Ownership

This is very challenging step.
An entrepreneur should actually get registered for LLP.
LLP means Limited Liability Partnership.

Limited Liability Partnership Act, 2008 came into effect by way of notification dated 31st March 2009.

Limited Liability Partnership in India is introduced as Limited Liability Partnership Act, 2008. It combines the advantages of both the Company and Partnership into a single form of organization. Renowned and accepted form of business worldwide in comparison to Company.

It has low cost of Formation.

It is easy to establish.

It is easy to manage & run.

There is no requirement of any minimum capital contribution.

There is no restrictions as to maximum number of partners.

The liability is limited. LLP & its partners are distinct from each other.

The partners are not liable for act of partners.

The statutory compliance level is less.

There is no exposure to personal assets of the partners except in case of fraud.

There is less requirement as to maintenance of statutory records.

There is less government intervention.

It is easy to dissolve or wind-up.

The audit requirement is only in the case of contributions exceeding Rs. 25 lakh or if the turnover is exceeding Rs. 40 lakh.

Disadvantage

It cannot ask for IPO.