Back to Home

WHAT ARE THE DISADVANTAGES OF PARTNERSHIP FORM OF BUSINESS ORGANIZATION?

Posted By admin on December 25, 2013 No Comments

Unlimited Liability: All the partners are jointly as well as separately liable for the debt of the firm to an unlimited extent.

Do not have a Separate legal entity: Since partnership firm does not have a separate legal personality of its own, therefore, it cannot enter into contract; sue/be sued by other parties; become a member of a body corporate(except section 25 company);held properties, assets, etc in its own name.

Contact us at 9818092002
Email : info@companyindia.co.in

Uncertain Life: The partnership firm has no legal entity separate from its partners. It comes to an end with the death, insolvency, incapacity or the retirement of any partner. Further, any dissenting member can also give notice at any time for dissolution of partnership.

Lack of Harmony: since in a partnership firm every partner has an equal right to participate in the management, sometimes there is a possibility of friction and quarrel among the partners.

Limited Capital: Since the total number of partners cannot exceed 20, the capital to be raised is always limited.

Contact us at 9818092002
Email : info@companyindia.co.in

No transferability of share: A partner cannot transfer his/her share of interest to outsiders without the consent of other partners.

Taxation

A partnership firm is being taxed at a flat rate of 30% unlike a sole proprietorship which is being taxed at slab rate.

Do you want to form a partnership firm?

Do you want to draft a partnership deed?

Do you want to form a limited liability partnership (LLP) firm?

D you want to get DPIN?

Do you want to get DSC?

Do you want to form a sole proprietorship?

Do you want to form a limited company?

Do you want to form a liasion office?

In case you need any further information

Contact us at 9818092002
Email : info@companyindia.co.in

Filed under partnership Tagged with Tags: , , ,

Leave a Reply

This blog is kept spam free by WP-SpamFree.

Call Us

(Mr. Vinay Gupta)

Call : +91 9818092002

Send a Query

Daily Updates over Email:

Our Partner

Our Partner