|Partnership Firm||Limited Liability Partnership (LLP)|
|Partnership Firms are registered under the Partnership Act 1992||LLP is registered under the Limited Liability Act 2008 Ministry of Corporate Affairs. (ROC)|
|Partnership Firms do not have Separate Legal Entity Status||LLP has Separate Legal Entity status|
|No Limited Liability feature||Limited Liability feature available|
|Foreign Direct investment not allowed||Foreign Direct Investment Allowed with approvals from RBI|
|No Perpetual Existence||Perpetual Existence|
|Not Transferable||Transferable by transferring shares|
|Annual compliance filing not required||Annual ROC compliance required to be done.|
|No Corporate Identity||Corporate Identity|
|Partnership Firm name can be used by any other entity in same business||LLP name reserved by MCA, not given to any other entity in the same business again.|
|The name does not end with the format of registration.||Name ends with LLP. Example: XYZ IT Solutions LLP, Raheja Developers LLP.|
Being an entrepreneur is no easy task, yet there is a common perception that starting a business is very rewarding.
The most difficult part is overcoming the comfort of a job and taking the first step towards entrepreneurship. Many people have business ideas that remain only on paper. Still, others dream of becoming businessmen but have no idea how and where to start.
Here are some fundamental steps you need to take for starting a business:
1. Ask yourself what are you good at? Don’t think about what you would like to do but what are you good at now? Do people like selling skills? Are you a really great stock adviser? Do you have an out of the box ecommerce idea? Start thinking on what talents you possess. Your talents can turn into marketable skills that customers will pay for.
2. Do you have funds for your business? Some ideas start selling instantaneously while others will require you to approach professional investors. Don’t be stifled by having a small amount of funds or not having any investment at all. You can save money by managing funds well. Try to keep your funds focussed on your core function. Explore outsourcing non-core work like graphic design or social media so you don’t have to invest time & money in recruiting and training.
3. For those of you who have always dreamt of becoming an entrepreneur but don’t know whether you are good at anything; you can still achieve your ambition. Everyone has or can evolves an expert skill set, you just haven’t identified yours yet. Think about things that you like doing or have done in the past. Consider starting a home based business that offers these products or services. Network marketing is also an option. With a small investment, usually less than Rs. 25000, you can have a ready-made business and become profitable in days. Direct sales can be the best way to start a business until you discover more talents and new avenues open up.
Becoming an entrepreneur is not a journey for the faint hearted. It all starts with an idea, just like anything else. Figure out what you are good at and focus on converting it into a business. Starting a business requires some kind of investment, be it time or money. If you want to start from home, explore content writing or freelance social media marketing.
Once you start earning good money as a freelancer, complete the formal requirements of starting a business by legally registering a company.