0
What is the difference between LLP and traditional partnership firm?
AbhishekKumargp6007
Under traditional partnership firm, every partner is liable, jointly with all the other partners and also severally for all acts of the firm done while he is a partner. Under LLP structure, liability of the partner is limited to his agreed contribution. Further, no partner is liable on account of the independent or un-authorized acts of other partners, thus allowing individual partners to be shielded from joint liability created by another partner's wrongful acts or misconduct.
Wiki User
∙ 7y ago
Add your answer:
Earn +20 pts
Is a partnership firm has any legal entity?
No, a partnership firm has no legal entity. Registering the partnership firm means registering the partnership relation. firm has no separate legal entity.
Can a partnership firm be a shareholder?
no, a partnership cannot become a shareholder because shareholders are large but a partnership is only between two persons and they share only between themselves.
What is the capital required to start a Partnership firm?
There is no limit on the minimum capital for starting a Partnership firm. Therefore, a Partnership firm can be started with any amount of minimum capital.
How many people are required to start a Partnership firm?
A minimum of two Persons is required to start a Partnership firm. A maximum number of 20 Partners are allowed in a Partnership firm.
What constitutes a partnership?
A firm is strictly not a person; It is an association of persons and the agreement by which a firm purports to enter into a partnership with an individual or another firm merely makes the partners of that firm individual partners of the larger partnership. A firm as such cannot enter into an agreement as a partner with another firm or individuals. Therefore, when one partnership enters into a partnership agreement with another partnership firm, the partnership is in fact between all the partners of both the firms. The Supreme Court has observed that a partnership agreement creates and defines the relation of partnership and, therefore, identifies the firm. if that conclusion is correct, it is only a further step to hold that each partnership agreement may constitute a distinct and separate partnership and, therefore, a distinct and separate firm. That is not to say that a firm is a corporate entity or enjoys a juristic personality in that sense. The firm name is only a collective name for the individual partners and each partnership is a distinct relationship. The partners may be different and yet the nature of the business may be the same, the business may be different and yet the partnership may be the same. And agreement between partners to carry on a business and to share its profits may be followed by a separate agreement between the same partners to carry on another business and share the profits therein. The intention may be to constitute two separate partnerships and two distinct firms or to extend merely the partnership originally constituted to carry on one business or to carrying on another business. It will depend on the intention of the partners. The intention of the partners will have to be decided with reference to the terms of the agreement and all the surrounding circum- stances including evidence as to interlacing or interlocking of management, finance or other incidentals of the respective businesses. In other words, the same partners can form two different partnerships. The Supreme Court has held that the word 'person' in section 4 of the Partnership Act contemplates only natural or artificial or legal person and a firm is not a person and as such not entitled to enter into a partnership with another firm or H. U. F. or individual. In this view of the matter there can arise no question of registration of a partnership purporting to be between three parties viz. a firm, a H.U.F. and an individual as a firm.
Is a partnership firm has any legal entity?
No, a partnership firm has no legal entity. Registering the partnership firm means registering the partnership relation. firm has no separate legal entity.
Can a partnership firm be a shareholder?
no, a partnership cannot become a shareholder because shareholders are large but a partnership is only between two persons and they share only between themselves.
Difference between traditional firm and modern firm?
Dear ITM student. I'm also looking for the same answer. May God have pity on us. ;) - ken arny
Meaning of partnership firm?
Partnership is "The relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all". Hence the persons who form the partnership are called 'partners' individually and a 'Firm' collectively
What is the capital required to start a Partnership firm?
There is no limit on the minimum capital for starting a Partnership firm. Therefore, a Partnership firm can be started with any amount of minimum capital.
How many people are required to start a Partnership firm?
A minimum of two Persons is required to start a Partnership firm. A maximum number of 20 Partners are allowed in a Partnership firm.
What are the difference between partnership and a joint Hindu family business?
Partnership is the result of an agreement or act of parties. HUF is created by the operation of law.Each partner in a partnership firm is personally liable for the debts and liabilities of the firm to an unlimited extent. In an HUF, only the Karta or the manager is liable for the debts and liabilities of the firm.The death of a partner automatically dissolves a partnership whereas the death of a member does not affect an HUF.A minor cannot become a partner in a partnership firm whereas in the case of an HUF, a minor becomes entitled to an interest by virtue of his birth.
Please I want a list of similarities between partnership firm and a company?
[object Object]
What is the difference between dissolution of partnership and dissolution of firm?
Dissolution of partnership refers to the termination of a partnership agreement between partners, while dissolution of a firm is the process of ending the entire business entity, including its legal existence. Dissolution of partnership may result in the business continuing with remaining partners or winding up, while dissolution of a firm involves liquidating assets and settling debts before formally closing the business.
Name of any partnership firm in India?
State Bank of India is one example of a partnership firm in India.
What constitutes a partnership?
A firm is strictly not a person; It is an association of persons and the agreement by which a firm purports to enter into a partnership with an individual or another firm merely makes the partners of that firm individual partners of the larger partnership. A firm as such cannot enter into an agreement as a partner with another firm or individuals. Therefore, when one partnership enters into a partnership agreement with another partnership firm, the partnership is in fact between all the partners of both the firms. The Supreme Court has observed that a partnership agreement creates and defines the relation of partnership and, therefore, identifies the firm. if that conclusion is correct, it is only a further step to hold that each partnership agreement may constitute a distinct and separate partnership and, therefore, a distinct and separate firm. That is not to say that a firm is a corporate entity or enjoys a juristic personality in that sense. The firm name is only a collective name for the individual partners and each partnership is a distinct relationship. The partners may be different and yet the nature of the business may be the same, the business may be different and yet the partnership may be the same. And agreement between partners to carry on a business and to share its profits may be followed by a separate agreement between the same partners to carry on another business and share the profits therein. The intention may be to constitute two separate partnerships and two distinct firms or to extend merely the partnership originally constituted to carry on one business or to carrying on another business. It will depend on the intention of the partners. The intention of the partners will have to be decided with reference to the terms of the agreement and all the surrounding circum- stances including evidence as to interlacing or interlocking of management, finance or other incidentals of the respective businesses. In other words, the same partners can form two different partnerships. The Supreme Court has held that the word 'person' in section 4 of the Partnership Act contemplates only natural or artificial or legal person and a firm is not a person and as such not entitled to enter into a partnership with another firm or H. U. F. or individual. In this view of the matter there can arise no question of registration of a partnership purporting to be between three parties viz. a firm, a H.U.F. and an individual as a firm.
How do you register the name of a Partnership firm?
If the Partnership firms are business entity that are owned, managed and controlled by one person. So Partners cannot be inducted into a Partnership firm.
