Partnership Firm Vs. Private Limited Company:

[Mika]

Which One is Better for Business

 

[Kayzzy3]

Partnership and a private limited company, both are small business organizations with a small capital and small working staff. I am not an expert in business and finance but based on my understanding and reading, the only difference I see between these two is while a partnership firm has limitations in terms of growing big whereas a private limited company can grow really big, sometimes even grow into the size of a public limited company.

A partnership firm is when you join with another person (can be more than one, and there is no limitation on how many people can participate, but if there are over a dozen it is generally recommended that you go for a public limited business model), raise capital, write a business contract, and register your firm in the trade and commerce department in the place of your operation. A Private limited company needs to be registered in the company registrar's office and need a document signed by shared holders.

Another fundamental difference is the while partnership firms are not limited in liability borne in case of bankruptcy, limited companies owners bear limited liability.

You have also noted that expansion is limited in partnership unlike limited companies, furthermore, there's a disparity in number of persons that can be on their board.

 

[Alexandoy]

To be honest, I do not know about that limited company although I think the limitation is the capitalization. It is only the partnership that we have here and, in fact, I had a partnership business before but we registered it as a single proprietorship to give me the full control. My business partner trusted in me but in the end it was him that I should not have trusted. But that is a different story to show the bad side of partnership.

 

[Taimoor Jutt]

Very nice article i would say. You explained very nicely the difference between thses two. Thanks for sharing informative stuff. But in partnership both registered or unregistered are legal . one more basic difference is members in partnership are called partners but in company are called share holders.

 

[btaliat]

The article is well written. I know public limited liability as well share theif stock to the public. But my question is this, in the public limited liability, if an a member of the board commits an offence in the course of runing the business, who will be arrested?

 

[Rashid]

I would like to chose Partnership between these two . because it is easy and simply operated in field of business. Plus 1 big advantage is that Either registered partnership or unregistered both are valid and legal. But it is not in private limited business.

 

[Nabeel119]

A partnership comprises of two or more people sharing the right to make business decisions and in the net profits. They are also responsible for debts and obligations without limit. In contract private limited companies have reduced risks, as liabilities (debts) are separate from the owners. The liability of shareholders is limited to the price paid for their shares with only a few exceptional circumstances to this.

 

[Psalmseen]

As regards the partnership firms and a private limited company, both are good.. But the best for a business is private limited company. Based on the fact that, for a private limited company, the sources of capital isn't only limited to loans from banks and others.. The company can raise capital through the issue of shares as well

 

[Shayo]

Both private and partnership are both good for business. Presently I am the sole owner of my business, but as it grows and expands, I will be open to partnership deals in future. It is good to have other hands putting funds in and other heads bringing ideas in.

 

[Joseph555]

Anything partnership I don't like it it business I love to do my own business alone I don't love to partner with anybody because you don't know anybody is background what if this isn't like a partnership with is a criminal or he brought his neutered phone to the business and at the end is being trapped and all money withdrawn from him what do you think will happen to the business no business before and collapse

 

[abubakar3141]

Registered and unregistered partnerships are both legal, but priority is given to the registered party. The Private Corporation is a separate organization with the right to own properties on its behalf. There is no distinct identity for a collaboration firm from its partners. ... Any change of members or directors does not impact the life of the organization.

 

[WhiteHouse]

I prefer private limited company.
A private ltd co have PVT. LTD after it's name, Minimum no. of chiefs needed in Pvt Ltd and also Minimum no. of individuals needed to consolidate a PVT LTD

 

[Denuola]

Partnership is better.

• A partnership can be formed by a simple form of a partnership agreement. Thus, it is easy to form with lesser complex formalities.
• Since a partnership firm can be established with mere 2 partners, it has the opportunity to pool more resources and funds for the firm.
• Partner is the owner of the firm thus they get complete control over the firm and its management.
• Since the decision of the firm are mutually taken by all partners, the partnership firm ensures every partner participate in decision making thus it leads to better and informed decision making
• The partnership has a flexible structure, thus its partners can anytime change the size and nature of its business.

 

[Kingsley]

I would prefer a public limited liability company as it can have a more wider coverage and open to more people and capital raising base.

 

[Hasan Raza]

Yeah! Of course dear you share valuable information regarding public and private company. I will suggest to take public limited company because it has much more benefits than private company. The main thing is of Liability which is differ in public and private.

 

[Seun4luv]

Both are legal, but the registered entity is preferred. The private company is a separate entity with an ability to own assets in its name. The patnership firm has no separate identity from its partners.. Any changes in members or directors will not affect the existence.

 

[Suba]

Partnership and a private limited company, both are small business organizations with a small capital and small working staff. I am not an expert in business and finance but based on my understanding and reading, the only difference I see between these two is while a partnership firm has limitations in terms of growing big whereas a private limited company can grow really big, sometimes even grow into the size of a public limited company.

A partnership firm is when you join with another person (can be more than one, and there is no limitation on how many people can participate, but if there are over a dozen it is generally recommended that you go for a public limited business model), raise capital, write a business contract, and register your firm in the trade and commerce department in the place of your operation. A Private limited company needs to be registered in the company registrar's office and need a document signed by shared holders.

Partnership Firm Vs. Private Limited Company, in my opinion there is nothing better or worse, a company is judged by its performance (planning, organizing and controlling) and the company's ability to make a profit. The main difference is in the recording of capital on the balance sheet, if the partnership records the amount of capital and the owner of capital, but in a company that records the number of shares and the initial capital. Partnership can also turn into a public company by applying for a license at the government trading office, of course after their financial reports are audited by a public accountant and by the Government Financial Supervisory Agency.

 

[Trexxxy]

Yeah, there are differences between the two, a partnership can actually expand if it wants and I don't think it is limited in capitalisation. Private limited are strictly owned by the founder, you have to buy shares to become a shareholder in that type of company.

 

[idhans]

Partnership and a private limited company, both are small business organizations with a small capital and small working staff. I am not an expert in business and finance but based on my understanding and reading, the only difference I see between these two is while a partnership firm has limitations in terms of growing big whereas a private limited company can grow really big, sometimes even grow into the size of a public limited company.

A partnership firm is when you join with another person (can be more than one, and there is no limitation on how many people can participate, but if there are over a dozen it is generally recommended that you go for a public limited business model), raise capital, write a business contract, and register your firm in the trade and commerce department in the place of your operation. A Private limited company needs to be registered in the company registrar's office and need a document signed by shared holders.

There is more room for expansion in public liability company compared to private liability company. But it all depends on your business model. It is not all businesses that is good for public liability companies.

 

[Olubayo12]

Partnership and a private limited company, both are small business organizations with a small capital and small working staff. I am not an expert in business and finance but based on my understanding and reading, the only difference I see between these two is while a partnership firm has limitations in terms of growing big whereas a private limited company can grow really big, sometimes even grow into the size of a public limited company.

A partnership firm is when you join with another person (can be more than one, and there is no limitation on how many people can participate, but if there are over a dozen it is generally recommended that you go for a public limited business model), raise capital, write a business contract, and register your firm in the trade and commerce department in the place of your operation. A Private limited company needs to be registered in the company registrar's office and need a document signed by shared holders.

partnership is not bad if the person you are going into partnership with us a very trustworthy person. but the aim of partnership is to be able to gain enough experience and knowledge so as Tobbeh able to establish your own business later. nothing is better than having your own business personally.