What Is a Partnership Firm ?
Partnership as an association of two or more persons who have agreed to share the profits of a business which they run together.
The persons who own the partnership business are individually called ‘Partners’ and collectively they are called as ‘Firm’ or ‘Partnership Firm’. The name under which partnership business is carried on is called ‘Firm Name’.
Partnership and Proprietorship are the 2 most popular forms of business organisations in India. The reason why these 2 forms of organisations are so popular is because they are relatively easy to set¬up and the no. of statutory compliance required to be done by these forms of organisations is relatively less than the statutory compliance applicable to LLP’s and Companies.
A Partnership Firm is a popular form of business constitution for businesses that are owned, managed and controlled by an Association of People for profit. Partnership firms are relatively easy to start are is prevalent amongst small and medium sized businesses in the unorganized sectors. With the introduction of Limited Liability Partnerships in India, Partnership Firms are fast losing their prevalence due to the added advantages offered by a Limited Liability Partnership.
ADVANTAGES OF PARTNERSHIP
More Capital Available
Combined Talent, Judgement and Skill
Diffusion of Risk
Annual Filing NOT Required
DISADVANTAGES OF PARTNERSHIP
Lack of Continuity
Risk of Implied Authority
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Siva Subramanian C
FirstMan Corporate Services LLP
Chennai - India
+91 97878 97000