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AmmanBBA exams now , they are planning to start a new business . Amman, Namman are interested

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 asked

Amman, Namman , Dhavaan , are three friends just passed their BBA exams now , they are planning to start a new business . Amman, Namman are interested to start the business in the form of partnership firm but Dhavaan suggests that they should start as a company. Amman, Namman consulted with some of their seniors and come to a conclusion that it’s better to start with a partnership firm keeping all the factors in mind. a. Suggest certain points which can differentiate between the two form of business that is partnership and company and on the basis of such points give the conclusion that it’s better to start as a partnership firm. (5 Marks) b. Suppose, Namman also agrees , that let’s start with the partnership firm and design the partnership deed first , what should be the various clauses that should be incorporated in the partnership deed by them.

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Open uri20170510 32134 ivjxpn?1494421728 answered

Hi Nandlal, Company is separate entity a separate person in the eyes of the law whereas partnership firm is not a separate entity. Taxation for both the entity will differ. Further Companies has to follow Companies Act, 2013 and there will lot of rules and regulations to be followed with respect to passing of resolutions filing of the same also filing of annual returns and other forms every year with the registrar. In case of partnership firm which is guided by Partnership Act there is no such condition of filing annual forms.

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