What is Partnership?
A partnership is a form of business where two or more people share ownership (Profit/Loss), as well as the responsibility for managing the company and the income or losses the business generates. It can be generated on the stamp paper. The firm can have maximum up to 50 partners
Why Choose Partnership?
A partnership, as opposed to a corporation, is fairly simple to establish and run. No forms need to be filed or formal agreements drafted (although it is advisable to write a partnership agreement in the event of future disagreements).
Advantages of Forming a Partnership
Collaboration
Tax advantages
Simple operating structure
Flexibility
Acquisition of capital
Disadvantages of Forming a Partnership
Conflict with partners
Authority of partners
Unlimited liability
Vulnerability to death or departure
Limitations on transfer of ownership if not registered