Partnership Firm
Two or more people come together and pool funds to start a business.
It is not compulsory to register the firm. But it is more advantageous to register a firm. Registering the Trademark of your Partnership Firm will help you to safeguard your identity and restrict others from using it.
Basic Mandatory Compliance
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Active Partner- he takes active participation in the firm and the running of the business
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Dormant- he does not take an active part in the daily activities of the firm but brings in his share of capital like any other partner and shares the profits and losses of the firm.
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Minor Partner - He will share profits of the firm but his liability for the losses will be limited to his share in the firm.
Benefits
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Two Heads (Or More) Are Better Than One
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Your Business Is Easy To Establish And Start-Up Costs Are Low
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More Capital Is Available For The Business
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You’ll Have Greater Borrowing Capacity
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High-Calibre Employees Can Be Made Partners
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There Is Opportunity For Income Splitting, An Advantage Of Particular Importance Due To Resultant Tax Savings
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Partners’ Business Affairs Are Private
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There Is Limited External Regulation
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It’s Easy To Change Your Legal Structure Later If Circumstances Change.