There are manifold sorts of companies and businesses that run in the present time. One such type of business is of partnership company or that of firm. Talking Considering partnership companies, it is another crucial type of business organization other than that of sole proprietorship and company formed up of business structures.
Remember there are times where it might not be possible for an entrepreneur alone to simply arrange for the necessary capital and resources. Moreover, the nature of business is somewhat like that it demands increased supervision and control, division of overall work and much sharing of danger. However, the number of members out there to share the danger as well as profits is not actually very big as in the time of a company. Similarly, the size of the business undertaken is not really massive enough for a company form of organization to get accepted. So, you should know that it is when partnership form of business is undertaken by the entrepreneur. So, before you go for any type of company make sure that you do register a company.
Meaning of partnership in the world of business?
Partnership is a kind of business entity where two or more individuals get together to provide the required resources and share the earnings in an agreed relation. The point is folks who agree to form a partnership form of business entity are distinctly known as partners. Further, the persons forming up a partnership are together known as firm.
In case you speak of the Companies Act, 2013, according to it, the least number of persons that are required to form a partnership type of business is actually 2. Whereas the utmost number of members in case of any partnership firm must not surpass increase hundred. Don’t forget that it is different than that of the Companies Act 1956, that set the maximum limit of members as ten in the instance of partnerships and twenty for banking and other kinds of businesses.
Formed on the basis of Agreement
Partnership firm comes into existence on the grounds of an agreement between two or more people agreeing to perform the business. The terms and conditions that rule this kind of partnership are outlined in a document known as the Partnership deed.
Presence of a Business Activity
The Partnership sort of business activity can be formed up only on the grounds of the presence of a business activity. You need to understand that this business can be anything and include any trade, industry or even that of field or profession.
Partners share profit and loss
Partners of the firm are permitted to share the profits as well as bear the losses if any in the course of business.
An Agency Relation
All partners or any sort of one type of partner acting on behalf of others could undertake partnership business. It means each and every single partner is kind of a principal and can behave in his own right. Further, he could even choose to act on behalf of other partners by working as that of their agent.
Conclusion
So, you should invest inn the partnership company registration and ensure that you do it rightly for your business venture.
