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Partnership Firms

Know More About Partnership Firm

Details :-

Partnership is the association of two or more persons. Partnership firm registration is not compulsory,However, unless a partnership firm is registered with the Registrar of Firms, the rights of the partners inter se or against strangers cannot be enforced in a court of law. Partnership firm are taxed separately and there is need to file separate income tax returns for your business.The major disadvantage, of course, is that the partners of a partnership firm are fully liable for the debts and obligations of the partnership. If your company is sued, then each partner will have to pay the damages and attorneys fees - and if the damages are steep, you could lose your shirt - and your house.

A limited partnership is similar to a general partnership except that the limited partners are only liable for what they put in to the partnership. Limited partners are like investors into the partnership - they can only lose what they invest. However, limited partners are not allowed to have any say in the management of the partnership. (Presently Limited partnership not allowed in India)So to take the benefit of limited liability, open a company.