Advantages of Starting Up as a Partnership Firm
An Partnership is a connection between two or more people who have agreed to share the benefits of a business carried on by all or any of them representing all as expressed in Section 4 of the Indian Partnership Act.
Advantages:-
- Easy to start
Partnership firms are one of the simplest to begin. The main requirement for beginning an association firm by and large is an Partnership deed. Consequently, an Partnership can be started on that day. Then again, a LLP registration would take around 5 to 10 working days, as the computerized marks, DIN, Name Approval and Incorporation should be acquired from the MCA.
- Better decision Making
In the partnership firm each partner has the right to making decision for his company. Decision making in a partnership firm could be faster as there is no concept of the passing of resolutions. In this process the main motive is to running the business for business objective with multiple perspectives and excessive knowledge .
- Raising funds
When compared to a proprietorship firm, a partnership firm can easily raise funds. Multiple partners make for more feasible contribution among the partners. Moreover, banks also view a partnership more favorable while sanctioning credit facilities instead of a proprietorship firm.
- Low cost for setup
A private limited company will cost you Rs. 10,000 just to start, and then there are compliance and auditor’s fees. A partnership firm company cost will start around .and the partnership will cost you around Rs.2000.
- Sharing risk
In partnership it becomes easier to share the risks . Not only does the risks get adjusted between each partner , but also the trouble of handling it becomes balanced among individuals.
- Moral support
Everybody should have the option to skip off thoughts or interview on significant issues. Also, we might require moral help when we experience difficulties or need to cope with work and everyday frustrations.
- Better work/life balance
By sharing the work, a partner may get lighten the load. It might permit you to go on vacation when required, realizing that there’s a trusted person to face to keep an eye on everything. This can affect your own life positively.
