What is the Difference between LLP and LLC License?

Since the concept of Limited Liability Partnership has been introduced in India, apart from commencing a traditional Limited Liability Company (LLC), it has become an alternative for business owners, investors and entrepreneurs commencing new ventures to start their business as a Limited Liability Partnership. In regard of this, it is essential to understand the pros of each of these business forms, the differences between LLC and LLP License them and think carefully which business formis best suitedfor the business.

Feature Comparison between LLP and LLC License

In order to help you in making a decision on which business form to choose, here’s a comparison of feature between the LLP and a LLC License:

Features	LLC License	LLP
Registration	Obligatory registration required with the Registrar of Companies. Certificate of Incorporation is irrefutable evidence.	Obligatory registration required with the Registrar of Companies.
Name	Name of a private company to end with the word “private limited” and a public company with the words “limited”.	Name to end with “LLP”” which is abbreviation for Limited Liability Partnership”
Capital contribution	A private limited company should have a minimum paid up capital of INR. 1 lakh and for a public limited company the requirement of minimum paid up capital is INR.5 lakhs.	Not specified.
Legal entity status	LLC is a separate legal entity.	LLP is a separate legal entity.
Liability of shareholders/ LLP partners	Limited to the scope of the unpaid capital.	Limited to the scope of the involvement to the LLP.
No. of shareholders / Partners	Minimum of 2 shareholders In a private company and maximum of 50.	Minimum of 2 shareholders and No maximum.
Foreign Nationals as shareholder / Partner	Foreign nationals can be shareholders/partners.	Foreign nationals can be partners.
Taxability	The income of domestic companies is taxed at 30% + surcharge+cess.	Income tax is imposed at the rate of 30%+ surcharge+cess.
Meetings	Quarterly Board of Directors meeting, annual shareholding meeting is obligatory.	Meetings are not required.
Annual Return	Annual Return and Annual Accounts to be filed with ROC.	Solvency & Annual Return and Annual statement of accounts has to be filed with ROC.
Audit	Obligatory, irrespective of turnover and share capital.	If the contribution is above INR 25 lakhs or if annual turnover is more than INR 40 lakhs then the audit is required.
Foreign Investment	Foreign investment approved on automatic or approval basis on a range of sectors in accordance with Foreign Direct Investment (FDI) policy. There are percentage limitations, and performance linked state of affairs, such as minimum capitalization in various sectors.	Foreign investment in LLPs has been authorized on May 11, 2011, but it is constrained to only those sector where 100% FDI for companies is permitted, and which do not have any performance linked state of affairs. All foreign investment in Limited Liability Partnership on approval basis.

Process of formation of LLP and LLC License

Incorporation of LLP	Incorporation of LLC
For formation of a Limited Liability Partnership, minimum 2 Partners are requisite. There is no prescribed limit for maximum number of Partners. In an LLP a body corporate can also be a member.	The minimum number of shareholder compulsory for a company is 2 and the maximum limit for shareholders is 50, in case of a Pvt. Ltd. company.
Steps for Incorporation of LLP	Steps for Incorporation of LLC
For the formation of Limited Liability Partnership, firstly applicant is required to apply for Designated Partner Identification Number for the designated partners of LLP and acquire Digital Signature Certificate for at least one of the Partners.	The first step for incorporation of a LLC is selection of name for the company. Then apply for Digital Signature Certificate and Directors Identification Number.
Application for Availability of Name & acquiringtheName for the anticipated LLP.	Drafting of Memorandum of Association (MoA) and Articles of Association (AoA).
Drafting of Limited Liability Partnership Agreement and filing of document of incorporation consisting of Form 2, 3 and 4 available on official web site (llp.gov.in) with the registrar of companies.	Digital signing, Stamping and e-filing of- AoA, MoA, E-Form 1, 32 and 18under Companies Act, 2013, and other documents if required will be submitted with the Registrar of Companies.
Obtaining Registration Certificate of Limited Liability Partnership.	Obtaining Incorporation Certificate of Limited Liability Company.

Both LLP and LLC protect the members/ partners from the legal trouble stemming from the activities of LLC License or LLP.

Conclusion

Both LLP and LLC are registered under Registrar of Companies and both the enterprises protect the partners or members from the legal risk restricting from the activities of LLP or LLC License. The main difference that a business must comprehend and take into description is the difference in its taxation and compliance obligation.

How to get a Food License for a food truck business in India? – Overview

How to get a Food License for a food truck business in India?

The food truck business in India is a very fast-growing and trending food business. The concept of a food truck came late in India, but this business is gaining a lot of popularity, and these food businesses are seen on a large scale compared to the other countries in the world. With a food truck in India, a massive amount of people will notice the foodstuffs available. Once the people start liking the food, it will keep growing; that's why it is mandatory to get a food license for a food truck business in India. In this article, we will discuss the process of getting a food license for a food truck business in India.

What are the Benefits of Opening a Food Truck Business in India?

Following are some benefits of opening a Food Truck Business in India:

1. Low Risk and Low Investment: The cost of a food truck is not more than Rs. 10 lakhs if you spend carefully in India.
2. Less amount of resources required: One of the primary and best benefits of this food truck business is that you have a low dependence on resources. It means you can start this food business even if you have 1-2 resources costing you around Rs. 4000/- to Rs. 8000/- per person.
3. Learning Experience:  If you are eager to learn new activities, fast included in running a food business in India, this is a great way to learn. You can estimate processes of analyzing data, get a safer grip on customer tastes and preferences, and handle marketing, promotions, and much more.
4. Catering Services at Events: Apart from the daily operation, you should view building a few partnerships and cater to cooperate festivals, events, etc.

What are the Essential Licenses and Permits required for obtaining a Food License for Food Truck Business in India?

Following are some vital license and permits required for obtaining a Food License for a food truck business in India:

1. EIN or Employer Identification Number: To obtain a Food License, you require an Employer Identification Number. The IRS uses it to recognize your business and collect all the significant taxes from you and your employees.
2. FSSAI License: It is compulsory to FSSAI License for operating any food business in India, and an FSSAI License is issued by the FSSAI Authority to commence India's food business.
3. Vehicle License: This business will operate on wheels; for that, you will require a Driver's License and Truck License. Depending on the vehicle's weight and width, some states in India may need a commercial Driving License to run your food truck.
4. Health Department Permit: This permit will be inspected and approved by your Local Health Department, and they will also check the food you serve is hygiene or maintained and created securely.
5. Business License: It is compulsory to get a Business License to operate and run a food business. Depending on the state or cities and the scope of services given, you may be charged a portion of your annual fee along with the license fee.
6. Seller’s Permit: In some states, the owners of the food truckmust require this permit, so you can buy foods at wholesale price without paying sales tax.
7. Fire Certificates: The Department of Fire will inspect your truck if you are practicing cooking equipment on the truck, and they will conduct inspections routinely on your food truck fire suppression system.
8. Food Handler’s Permit: In some states require one or more employees of a food truck to get this permit, and in some states or cities, before the permit is issued, it may need one or more employees to take a food security status.

What are the Major Documents required for the Food Truck Business in India?

Following are the main documents required for the food truck business in India:

1. Completed and duly signed Form A.
2. Submit two latest passport-sized photographs of the owner.
3. Submit PAN Card of the FBO Owner/Director/Partner/Proprietor.
4. Submit any proof of ownership of the premises.
5. Submit the property papers in case of property owned.
6. Submit the Rent Agreement in case of the rented property.
7. Submit a Partnership Deed.
8. Submit the complete and detailed list of all the food items the unit will be processing.

How to get a Food License for a Food Truck Business in India?

In the present day, the FBOs or Food Business Operators in Indian can easily register their business. Following is the steps to obtain a Food License for a food truck business in India: 

1. After submitting the application for registration and license by the online application system, the food business operators no longer need to transfer the application online or go to the registration center. FSSAI offers a platform where all the food business operators can easily apply to get online registration of license.
2. Then the food business operator needs a valid email ID and mobile number for the registration. Once the FBO gives all the essential details, they can apply for the FSSAI Registration of business.
3. Once the food business operator submits the application form, they will receive a reference ID or confirm receipt by the system for future reference. If the food business operator meets all the rules and regulations prescribed by FSSAI, an FSSAI Authority in India issue the Food License Certificate.
4. The food business operator can also review the application status online and can make their payment online.
5. After getting the Food License and completing the validity period from one to five years, a food business operator can apply for the renewal of a new food license, modification, or request for a duplicate license. Always remember that the FSSAI issues the FSSAI license and is responsible for food security in India, and they do a strict inspection and checking for food trucks as well in India.

Conclusion

The food truck business has now become highly popular. These start-ups provide various fast food and cuisines, which are healthy to consume and cheaper as well as compared to other restaurants. Its fast service and superb quality attract more people. Therefore for functioning the food truck business, get the food safety license today.

What are the process of Mergers and Acquisition?

Companies globally adopt these strategies to grow within the competitive market. The merger has been defined within the Companies Act, 2013 because the combination of two business entities to form a replacement entity. The acquisition, on the opposite hand, involves one party selling bent another wherein the buying party combines both the entities to form it into one entity.

 A merger is essentially finished the aim of expansion of business unit and to broaden the hands in every corner of the market making an entry to new segments for gaining market limelight. The reasoning behind of Merger and Acquisition generally given is that two separate companies together create more value compared to being on a private stand.

Process of Mergers and Acquisition

The process of Mergers and Acquisition will access all the information and conclusion about best Mergers and Acquisition in India.

1. Dig into Memorandum 

The purpose of MoA (Memorandum of Association) is both companies will render what all the activities are permitted.

2. Share a word with Stock Exchange

It is prominent to tell the stock market about the proposed merger and acquisition happening and send all copies of resolutions, notices and therefore the orders to the stock market during a timely manner.

3. File an Application to the High Courts

After the confirmation on a proposal by the Board of the Director, the merger companies should file an application to the Supreme Court of the respective state from where the headquarters is situated.

4. Notice dispatched to Shareholders and Creditors

The shareholder of the businesses about the meeting to be held for 21 days advanced notice is required. The notice shall be published in two newspapers one within the vernacular language of the state and the other one is an English newspaper.

5. Filing of the Orders with the Registrar of the Companies

The certified copy of the order of the supreme court of the state must be filed with the registrar of the businesses within the limit as specified by the Supreme Court.

Is Visa required for opening a business in USA?

Establishing a business in USA required certain guidelines which must be followed. It is necessary for the individuals to set up their business by following proper rules and regulations. Starting a business in another country is not the same as starting a business in one’s own country. The most significant aspect in the set-up of a business in US is registering the company. The process for US company registration is laid down by the US officials.

Eligibility Requirements for USA Company Incorporation

• Only one individual is required for the incorporation in the United States.
• The minimum deposit requested by the bank depends on the bank’s guidelines.
• A citizen of any country is eligible to apply for US company registration.
• No minimum deposit is required for the creation of a bank account.

Registration process to establish a company in the USA

Selection of the type of establishment

USA generally offers individuals to make a choice between two types of entities from which the individuals have to select one. The two types of establishments that can be set up are – corporation or LLC. After appropriate research, the business owner must choose the entity as per his preference.

State selection where the company will be established

The next step is to select the state in which the individual wants to establish the business. He must choose the state keeping in mind all the factors, where the

Filing of Incorporation report

A report of incorporation must be filled by the company and submitted to the agent who then further submits it to the authority. This is an important step that requires individuals to ensure they include all necessary information.

Appointment of a registered agent

The permission to apply for company registration in USA is given only to the authorized individuals who are known as the agents. Hence, appointment of an agent is a compulsory step in the US company registration. This step makes the US registration process different from other company registrations. Some of the agent’s duties include collection and submission of proper documents. He is also responsible to effectively communicate with all the individuals involved in the process and adhere to all the provisions.

Selection of a company name

The name of the company is what gives the first impression to the public. Thus, it must be unique and must reflect the brand’s identity. After the submission of the name, it is approved by the authority, once approved; the name can be used as the company name.

Creation of Employer Identification Number (EIN)

The US Internal Revenue Services (IRS) issues an employer identification number that is significant for the applicants. EIN is a unique identification number that is allotted to a company.

Submission of the certificate of authentication

It is important for the companies to be a part of Hague Conventions. The companies must submit certificate of authentication that do not fall under the Hague Conventions.

Obtain vendor’s license authorization

A tax permit is the next step that must be provided at this step. The individuals must acquire vendor license or authorization.

Acquire significant tax permits from the state

The company must also obtain other tax permits. All taxes including income and employment related taxes must be filed by the individual.

Acquire permissions and licenses

There are several licenses that must be provided by the business owner before company incorporation. He must obtain the required licenses.

Documents required to establish US Company

• Certificate of Incorporation
• Share certificate of all the shareholders

Is Visa required for opening a business in USA?

No, ideally starting a business in USA does not require a visa. But it is advisable to acquire a visa because the individual who starts the business would stay in the country for certain duration.

Types of Visa that USA provides are as mentioned below –

• B – 1 Visa

This type of visa is provided to the US government by the individuals to encourage the entry of more business owners that area interested in doing a business in USA.

• L -1 Visa

This is a visa type provided by US government for intra-company transfers. Individuals eligible for this visa type must be employed at a company in their country for at least one year.

• O- 1A Visa

This visa is provided to individuals who belong to the television and entertainment industry. Individuals who have achieved rewards and have been awarded are offered this visa.

• H1- B Visa

Conclusion

Visa is important if an individual wants to start a business and undertake business activities. It may not be obligatory but it is better for the individual to acquire. It makes business related activities less complicated to individuals who have visas with them.

Also, read: How to Start a Tech Company in USA As A Non Resident

Why a Business Plan is Considered as the First Step of Business

What is a Business Plan?

A business plan is a written description of your business’s future. That’s all there is to it — a document that describes what you plan to do and how you plan to do it. If you jot down a paragraph on the back of an envelope describing your business strategy, you’ve written a plan or at least the germ of a plan.

The Business plans can help perform a number of tasks for those who write and read them. They’re used by investment-seeking entrepreneurs to convey their vision to potential investors. They may also be used by firms that are trying to attract key employees, the prospect for new business, deal with suppliers or simply to understand how to manage their companies better.

Key Points of a Business Plan

1. Executive Summary Market Analysis
2. Company Information
3. Company Organization
4. Marketing and Sales
5. Product Description
6. Financials

Things to be Considered before Drafting a Business Plan

1. Determine your purpose
Having a plan to make a profit is important, but it’s far from the only thing that matters when you start a business, experts say.

“Business plans … encourage entrepreneurs to focus on what they are going to do,” said Alan Williams, co-author of “The 31 Practices” (LID Publishing Inc., 2014). “This overlooks two more important questions: ‘why’ — why it exists and why employees would want to get out of bed in the morning, and ‘how’ — the values of the business, what it stands for, how people representing the business will behave.”

2. Build your vision
The key to business success is having a clear vision of what you want to accomplish as a company, experts say. But before you write a business plan, you should come up with three to five key strategies that will enable you to achieve that vision, advised Evan Singer, CEO of SmartBiz, a provider of SBA loans.

3. Clarify your business model
Alex Muller, senior vice president and chief product officer of GPShopper at Synchrony Financial said a good financial model should include many of the details you would put in your formal business plan — for example, hiring, pricing, sales, cost of acquisition, expenses and growth. As with a business plan, your model should be revisited and updated as the realities of your business start to unfold.

4. Identify your target market
Identifying a target market can be a tricky obstacle to get through. To help narrow down your market, Grant Leboff, CEO of Sticky Marketing Club, says to answer the question, “Why am I uniquely placed to solve the problem?”

5. Test your business idea
Entrepreneurs should go out and talk to industry experts, potential customers in their target market and other entrepreneurs to determine their business’ viability, said Kara Bubb, a principal consultant at Kara Bubb Product Consulting.

“Talk to some real potential future clients [and experts], and ask for some honest feedback,” Bubb told Business News Daily. “What do they think about your business idea? Who, specifically, are you targeting with your business? How big is the market? Will your market buy what you are selling? Who is your competition?”

Is it important to have a Business Plan?

Here are 4 reasons why you need to get a business plan review

1. To raise money for your business
Potential investors or lenders want a written business plan before they give you money. A mere description of your business concept is not enough. Instead, ensure you have a thorough business and financial plan that demonstrates the likelihood of success and how much you will need for your business to take off.

2. To make sound decisions
As an entrepreneur, having a business plan helps you to define and focus on your business ideas and business strategies. You not only concentrate on financial matters, but also on management issues, human resource planning, technology and creating value for your customer.

3. To help you identify potential weaknesses
Having a business plan helps you to identify potential pitfalls in your idea. You can also share the plan with others who can give you their opinions and advice. Identify experts and professionals who are in a position to give you invaluable advice, and share your plan with them.

4. To communicate your ideas with stakeholders
A business plan is a communication tool that you can use to secure investment capital from financial institutions or lenders. It can also be used to convince people to work for your enterprise, to secure credit from suppliers, and to attract potential customers.

Creating a business plan involves a lot of thought. You need to consider what you want to do, and use that as a starting point. It doesn’t need to be complicated. At its core, your plan should identify where you are now, where you want your business to go, and how you will get there.

Writing a good business plan, the Ernst and Young Business Plan Guide add, can’t guarantee success, but it can go a long way toward reducing the odds of failure. This is also according to multiplestreams.org, even if you aren’t looking for investment, your entrepreneurial plans will fall flat quickly without a plan to guide them.

What is an effective Business Plan?

1. CHOOSE YOUR AUDIENCE
   Before you even begin writing a business plan, you should decide who it will be targeted at. Business plans can be “externally focused”, which is to say that they target people outside of the company (e.g. investors or lenders), or they can be “internally focused”, which is to say that they target people inside the company (e.g. managers or workers). Knowing the target audience of your business plan will help you keep the information inside both relevant and appropriate to the reader.
2. BUILD A CLEAR VISION
   If you don’t already have a strong vision for your business, then it’s important that you build one before starting work on a business plan. A vision is an image of where you want your organization to be in the future (a goal, per se), which even determines the actions that you take. Naturally then, having a strong, clear vision is very important in creating a well-guided business plan.
3. USE BUSINESS ANALYSIS
   Using various different business analyses allows you to discover a number of different internal and external factors that you might have otherwise not considered. SWOT, PEST, and STEEPLE analyses, for example, can help you find gaps in the market, foresee various different threats, and leverage strengths and opportunities which you already have or face..
4. SET REALISTIC GOALS
   While it’s good to be optimistic, make sure that the goals you set are realistic and attainable. Not only will achieving more goals (even if they are a bit easier) improve the morale of those immediately inside the business, but it will also ensure that potential investors can see the consistent progress which you are making.
5. CONSIDER DIFFERENT TIME FRAMES
   Business plans are normally set over a certain time period. They explain what the organization wants to achieve, and how it will do it, over a predetermined time frame. When creating your own business plan, it can be valuable to take into account various different time frames to see which business plan would be of most value to external and internal audiences.
6. BE LOGICAL, RATIONAL, AND CONSERVATIVE
   Similarly to point number four, your business plan should be logical, rational, and conservative. Aside from setting realistic goals, this can mean:

-Properly supporting any claims or assumptions
-Fully fleshing out the means of achieving goals
-Considering the possibility of worst-case scenarios
-Minimizing the amount of ‘fluff’ or ‘empty words’ included in the plan

7. PERIODICALLY REVIEW YOUR PLAN

Finally, you should periodically review your plan to make sure that your business is going in the right direction. Sometimes, your business plan might even need to be reworked if you see new opportunities or threats in the market. Either way, it is good to make sure that what your organization is doing is consistent with your plan, which should be both well thought out and up-to-date.

Enterslice has a team of amazing professionals, who use the latest technologies and trends available in the market. If your company is looking for a business consultant anywhere in India, then do give us a chance wherever you require a business consultant in Delhi, Mumbai, Chennai, Bangalore etc.

Overview on FSSAI Registration: How To Apply Fssai License

Overview on FSSAI Registration

The Food Safety & Standards Act, 2006 introduced to improve the hygiene and quality of food has brought about tremendous changes in the food industry. As per the Act, no person shall commence or carry on any food business except under a FSSAI license or Online FSSAI registration. Therefore, any food manufacturing or processing or packaging or distributing entity is now required to obtain a FSSAI License or Registration.

FSSAI Registration

FSSAI registration is required for all petty food business operator. Petty food business operator is any person or entity who:

1. Manufacturers or sells any article of food himself or a petty retailer, hawker, itinerant vendor, juice stall, sweets shops or temporary stall holder; or
2. Hawker selling packaged or freshly prepared food by travelling on movable cart or foot from one location to other.
3. Small scale or cottage or such other industries relating to food business or tiny food businesses with an annual turnover not exceeding Rs 12 lakhs and whose:
   • Production capacity of food (other than milk and milk products and meat and meat products) does not exceed 100 kg/ltr per day or
   • Procurement or handling and collection of milk is up to 500 litres of milk per day or
   • Slaughtering capacity is 2 large animals or 10 small animals or 50 poultry birds per day or less.

Petty food business operators are required to obtain a FSSAI registration by submitting an application for registration in Form A. On submission of a FSSAI registration application, the registration should be provided or application rejected in writing within 7 days of receipt of an application by authority.

Also, read: How to Apply for Basic FSSAI Registration

Guide on Private Limited Company Registration in India?

Online Company Registration in India - An Overview

Private Limited Company is one of the highly recommended ways to start a business in India. This type of company offers limited liability for its shareholders with certain restrictions placed on the ownership. An LLP has partners, who own and manage the business. Whereas in private limited company registration, directors may be different from shareholders.

Enterslice, a leading legal consultant, offers quick Company Registration in India with three simple steps

• Register your directors with the MCA (Ministry of Corporate Affairs)
• Get guidance to choose the right company name
• Draft your company's constitution (MoA and AoA)

A Certificate of Incorporation (CoI), along with PAN and TAN can be received post approval of the company registration process. You can officially open a current bank account with the Certificate of Incorporation and begin your business operations.

Our Recommendation: The major types of companies that can be incorporated through the SPICe form.