Characteristics of Partnership Registration Firm
Established based on a Contract
A partnership company shall be established on the basis of a contract between two or more parties agreeing to enter into a relationship. The terms and conditions
governing such a partnership are set out in a document known as the Partnership Deed.
Nature of a business activity
The partnership model of business activity can be formed only on the basis of the nature of business activity.
The company can be anything and include any trade, sector or occupation.
Profit-sharing and loss between the partners
Partners are entitled to share the profits and to bear the losses, if any, in the course of the company.
Existence In partnership business, all partners or any partner acting on behalf of others may participate. It means that each partner is an in-house manager who is able
to operate alone. He can also serve on behalf of other partners as their representative.
Total Partner Liability
For all losses incurred throughout the relationship, each partner is personally liable. In other words, they can use their personal assets to pay off the outstanding debts of the partnership company.
No compulsory registration
The registration of an entity's form of partnership is not necessary. The partners may, however, choose to register the company with the company registrar.
Every partner is allowed to participate in the company's daily operations. Participation in the company's day-to-day operations, however, is not compulsory for each partner, but the business partners
must agree to take the required decisions from other partners.
Partnership relationship term
The partnership company may continue as long as the partners wish. However, if required by law, if any of the partners dies, retires or becomes insolvent, the partnership can end. But, after working out the outgoing partner's due share,
the remaining partners may continue to do business under the same name.
Share Transferability Limitation
A partner is unable to transfer his share to any other party. However, he can do so with the permission of other partners.