Partnership
Definition |
Formation |
Types of partnership |
Registration |
Advantages |
Disadvantages |
Documents required |
Taxation |
FAQs |
Disadvantages
a Partnership firm has no separate legal existence of its own i.e., the Partnership firm and the partners are one and the same in the eyes of the law
Unlimited liability on the owner: In case there is a need for payment or any sort of liability, partner's property will be considered as business property. This disadvantage is not there if a limited company is incorporated.
Fundraising: Money cannot be raised from equity investors, angel investors. However, banks can lend money as a loan to the firm.
Transferability: A partner cannot sell his business. There are restrictions on the transfer of ownership interest in a Partnership firm. A Partner cannot transfer his interest in the firm to any person except to the existing partner without the unanimous consent of all other partners.
Definition
Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all
who have entered into a partnership with one another are called individually, "partners" and collectively "a firm".
A minor can be admitted to share only the profits of a partnership.
the name under which their business is carried on is called the "firm-name".
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