Benefits of a Partnership Firm
A partnership firm is a business entity that is controlled by an association of people with the sole purpose of making profits. In a partnership firm, the partners share the liability of profit and loss of the company.
Read through a few benefits of a partnership firm
Easy to start
Partnership firms are easy to start. All you need is a partnership deed and a partnership firm can be started on the same day.
Decision making is done on a positive level. Both the partners have an equal say in the decisions made. If in case there is a conflict between the two partners, they need to sit and resolve it by themselves. As the ideas of both the partners need to be considered, decisions are not made in haste.
As a partnership firm comprises of multiple partners, raising funds becomes considerably an easier task when compared to raising funds for a proprietorship firm.
In a partnership firm, company risks are shared by the partners. This criterion encourages the partners to take more risks and thereby contributing to the expansion of the business.
A partnership firm is very flexible in terms of decision making and conversion of its nature of business or area of operation. There is no legal procedure for this, only the consent of all partners is required.
Since all the partners are owners, there is a greater possibility that the business can have owners of all specializations. This will be a benefit for the company as it can actively participate in all aspects of the business.
In a Partnership firm, it is not required to appoint an auditor for the company and annual filing is not necessary to be filed.
Registering your company as a partnership firm comes with a lot of added advantages. Since it’s controlled by an association of people, the decisions that are made in the business will be better when compared to a proprietorship firm.
Get in touch with us today to get your partnership firm registered. For more details, call us at +91-9900328729, +91-80-40909797.