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What are the advantages and disadvantages of being a unlisted company?
There are many advantages and disadvantages to being an unlisted company. Advantages would be being more private and not being overwhelmed with potential clients. However, there is more of a disadvantage than anything. Most people will not be able to search for your company online because it is unlisted, so you will lose out on money that way.
What is the difference between company and patnership?
A company and a partnership are things that will often go together, but are not related. A company is something such as Microsoft, and a partnership would refer to two or more people that have a business relationship within the company.
What document clarifies how partners will share profits and losses?
That would be a partnership agreement.That would be a partnership agreement.That would be a partnership agreement.That would be a partnership agreement.
Why would a sole trader change to a partnership?
so that they can save their business if it is going to become bankrupt or something. and then they can go into partnership with someone so that their business is save. What a load of poo
What would explain one way that a general partnership differs from a limited partnership?
A general partnership would not be as close knit as the limited partnership. There also would not be as many legal proceedings to go with it.
What isnot a type of partnership?
A type of partnership that is not a partnership would be one that does not involve business.
Can two limited companies form a partnership?
Company law Department has clarified the position regarding two companies entering into partnership in circular no. 1/81-CL-V dated 14th September 1981A question has been raised whether an incorporated company can enter into a partnership with some other person or some other company. The matter has been examined by this department in consultation with the Department of Legal Affairs and I am directed to say that prima facie a company entering into a partnership with some other person or some other company would be ultra vires and will be against the principle that a particular company or an incorporated body cannot lawfully employ funds for purposes not authorized by its constitution which would normally be the memorandum and the articles of association. However, a company or an incorporated body, if so authorized by its constitution, can enter into partnership with an individual person or with another company irrespective of nationality and residence. This would, however, require the company to adopt very special articles since many of the provisions of the Partnership Act would be difficult to apply to such a partnership. In view of this, while considering applications for registration of firms with bodies corporate as partners under the Indian Partnership Act, 1932, the State Governments should examine the applications before them and find out whether the memorandum and articles of association of the applicant incorporated companies contain any special articles which authorise the incorporated companies to enter into partnerships and the articles also take care of the possible anomalies which have been pointed out in the Calcutta HighCourt's ruling in the case of Ganga Metal Refining Company P. Ltd. v. Income-tax Commissioner West Bengal, (1968) 38 Com Cases 117 : AIR 1967 Cal 429."In short we can say that companies can enter into partnership if they are so authorized by their memorandum of association. Otherwise company entering into a partnership with some other person or some other company would be ultra vires.Aditya Deo
Who can Sign a contract for a company?
Whoever is listed in the company's Resolution, whether it is a partnership, a corporation, or a proprietor. The company must provide the Resolution, in the same manner that an individual would produce a driver's license to cash a check.
Can you change your last name based on a domestic partnership?
Usually no, not solely on a domestic partnership. You would have to file a legal name change.One exception is when registering a domestic partnership with the State of California. One or both partners can change their middle or last names on the Declaration of Domestic Partnership form as part of the registration. Information concerning this name change process can be found in California Family Code sections 298, 298.5 and 298.6.
What is the difference between partnerships and companies?
= The Difference Between a Partnership and a Limited Company = The main difference between a partnership and a limited company is that the liability of a company's shareholders is limited to the amount of the unpaid amount on the shares that they own. Partners on the other hand, can not restrict their liability (unlimited liability) and therefore can be held personally responsible for any unpaid debts the partnership incurs. This is potentially very dangerous as partners are joint and severally liable for partnership debts. Thus if one partner engages in an activity which results in large debts, all partners, regardless of whether or not they had prior knowledge of the activities would be equally liable to make good any shortfall in funds from their personal assets. The internal workings of a partnership are usually governed by a deed. This agreement is the equivalent of the memorandum and articles of association belonging to a company. The partnership deed will set out procedures and rules relating to capital maintenance, profit shares of individual partners, the admission of new partners and the resignation of existing ones. The partnership act does not provide a comprehensive set of rules and procedures on the governance of a partnership and therefore, without a partnership deed many important aspects of the business, such as disputes and working practices will not be covered and may therefore result in inconsistent and perhaps unfair decisions being taken. One further difference between a partnership and a limited company is the way in which each is taxed. A company pays tax on its profits and directors are taxed on what they receive in remuneration from the company. A partnership on the other hand is not taxed in its own right as a company is (a partnership is not a separate legal person). Instead each of the partners are taxed on their share of the profit, irrespective of how much or how little they have taken out of the business.
What factors distinguish a partnership from a company Under what circumstances would you consider the company a better business structure than a partnership in Australia?
* the members of a business venture created by contract * a cooperative relationship between people or groups who agree to share responsibility for achieving some specific goal; "effective language learning is a partnership between school, teacher and student"; "the action teams worked in partnership with the government" * a contract between two or more persons who agree to pool talent and money and share profits or losses
Why would business change over time?
Sole Trader-Why might a business change its ownership over time?One reason that a Sole Trader might decide to change their ownership into a Partnership is that the Sole Trader might be struggiling from lack of skills with the business. They might want to invite someone into the business with different skills to help run their business.Another reason for a Sole Trader to change their ownship might be that they want someone to join them to share responsibilites, ideas and the heavy work load that a Sole Trader has as this would mean a lot less stress for them.Also, the sole trader might want to pair up and become a Partnership as a way to raise their capital from the other person.Reasons for a Sole Trader, wanting to change into a Private Limited Company might be that they want to bring a large verity of different skills into the business.Another reason might be that all the shares sold would reasice capital, being a great advantage for the company as it will mean they would have the ability to expand their business, product, service ect.How may liability change?If a sole trader became a Private Limited Comapny, their liability would change to Limited Liability. Limited Liability is a legal term which means if the business fails over a certain amount of time, share holders can only loose the amount of money that they have invested in the business, meaning their personal assets will not be at risk.However, if the Sole Trader because a partnership, their liabilty would stame the same, as both Sole Trader and Partnership ownerships have the same liability.How does changing the ownership help the business grow?If a Sole Trader became a Partnership, it could help the business grow in quite a few ways. As their would be a another person running the business with them, it would bring other sets of important skills into the business.It would also mean that it would be a great chance to share responsabilites and ideas together, helping the business in the ways that could improve it in many different ways.As well as that, changing into a Partnership will mean that it would raise capital from the other person, bringing more money into the business again, for things such as expanding, new products and improvment on service.Changing into a Private Limited Company could help the business grow in many ways. Again, it would bring a variety of different skills and ideas into the business, helping it grow quickly.Also the shares sold would raise capital, which would be a great advantage as it would mean the business would have a great chance to for the business to expand their busienss, product, service ect- Meaning the business would grow rapidly.How does changing ownership make it easier to get funding from banks?If the Sole Trader changed its ownership into a Partnership, the banks are more likely to lend the business money than if it was a Sole Trader ownership. The bank would be more willing to lend money to a business owned and runned by more than one person. As a Partnership can have from 2-20 people in the business, all with Limited Liability, the bank would not have to worry as much about getting their money back, as there would be more than one persons assets against their loan.Although the bank would be more likely to fund a Private Limited Company than a Sole Trader, they may still find it hard depending on the size and running of the business.If they changed their ownership to a Pubilc Ltd, the bank would most likely be reasonable when it comes to funding them as a business that's shares are sole publicly, as it would be less likely to fail.How does changing ownership affect their competition?If a Sole Trader changed into a partnership, it would automaticly add an edge over the competition, as more people would bring new ideas and skills, improving the business and making more money.If a Sole Trader changed into a Private Limited Company, all the shares sold would raise capital, giving the company ability to expand, product and service- the affect of this would add a huge affect to the compeition.Partnership-Why might a business change its ownership over time?A partnership may have to change into a Sole Trader if some has died or left within the business. This will mean that the remaining person would have to buy out their shares in the business.If a partnership changed into a Private Limited Company, it could be because they want expand their business. To do this, they would have to sell shares to friends or famlys to become this type of business. Changing their ownership would be a great advantage and new start for their business as it would mean that they would have limited liability.How may liability change?If a partnership changed into a Sole Trader, their liabilty would stay the same - unlimited liablity.However, if a partnership changd into a ownership to Private Limited Company, their liability would change so they would have Unlimited Liability, which is a great advantage as it would mean they would only be able to loose what they've put in the business.How may changing ownership help the business grow?If a Partnership is forced to change into a Sole Trader because eiter someone has died of left the business, it wouldn't necessarily help the business grow, however it would mean that there would be a sudden gain of control within the business, making it easier to communicate and work with other people.If a Partnership changed their ownership into a Private Limited Company, it would mean that they would have Limited Liability. This could possibly mean that it could help the business in the way that the share holders would be more willing to invest their money into the business, for room for improvement.As well as the advantage of having Limited Liability, changing into a Private Limited Company would mean that a wider range of ideas and skills would be introduced from the new share holders. Shares have to be brought, so whatever money given in return for the shares, would be put into the business.How does changing ownership make it easier to get funding from banks?Changing into a Sole Trader, might not make it any easier to get funding from banks. It would all depend on the size of the business.If a Partnership changed into a Private Limited Company, it is more than likely that it will become easier for them to get funding from banks. This is because banks are more willing to fund bigger companies.How does changing ownership affect their competition?Changing ownership from a partnership into a Private Limited Company, would introduce a wide range of new skills and ideas into a business. This will mean competition would be greater, as the business would eventually improve. As the shares would be sole sold capital, this would give the company the ability to expand and grown, effecting and putting an edge on their competiton.
