Partnership Firm Vs. Private Limited Company:

[Deucalion]

Partnership is good when you do not have enough money to finance your business the way you want it. The best business is the one you own yourself as all the profits goes to your personal account without sharing anything with anybody.

Partnership business is good because all business responsibilities will be shared between all individuals in the business organisation and all pressure will not be on your head ,the disadvantage is that its can leads to this agreement and trouble.

 

[Ralphjoe]

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.

In my own opinion if I would want to start up a business and I was asked to choose between a partnership business and a private limited company I will definitely choose the private limited company because it has big potential of growing inside than a partnership business.

 

[Setfragil]

Partnership business is good because all business responsibilities will be shared between all individuals in the business organisation and all pressure will not be on your head ,the disadvantage is that its can leads to this agreement and trouble.

You understood my point. Partnership in business is not totally bad for people to be involved with but business partners tends to be more dangerous and greedy when the business becomes successful.

 

[eLdavis]

I would like you to throw more lights in where you said partnership is limited in terms of growing big. What are the limitations that would hinder growth. Most persons might not want to go for partnership though mainly because of past experiences with people

 

[Richard92]

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.

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.

I prefer a private limited company than a partnership firm because a private limited company is owned by one man who makes his decision without any hindrances.

 

[kay169]

When it Partnership and sole Proprietorship I think they are both good depending on how well. You work with people And how good you can carry out tasks alone on your own

 

[HayKay]

There's no difference, it's just dependent on what you want. Though the advantage of partnering might be the availability of funds for the business, especially when thinking of expansion. But if you feel on your own you're good to go, there's no issue

 

[Josemendez]

If I have what it takes to start my own business , I don't see any reason to have a partner. I do rather hire people as employees to help me in the business.

 

[GIFTMICHAEL]

Everyone has choice when it comes to the option of business he or she would engage into. Buy for me, I prefer going into private liability company than partnership.

 

[Nomad]

A private limited company leaves room to accept a lot of investors when needed. You can even have 100-200 investors. But partnership enterprise is comparatively a small business that does not leave a room for too many partners.

 

[Hena101]

Partnership is good when you don't have enough capital for the company or you don't have the experience of running it a lone but if you have then private is good.

 

[Yusuf]

In all of this business ideas. I will prefer to go with sole proprietorship. With this you will be your own boss and won't even share profit with anybody even though you will also be the one to take the risk

 

[Kelly5]

There are definitely going to be some major and obviously open difference between these two type firms from one country to another country as we know it

 

[Richard92]

There are definitely going to be some major and obviously open difference between these two type firms from one country to another country as we know it

I will prefer a private thing that the partnership firm because of areas of decision-making and carrying out day-to-day working activities in the company.

 

[Jlife]

Most times partnership firm are always easier to manage especially if you're dealing with trusted and responsible people, most big companies in the world are partnership business.

 

[joy101]

Both of them are good to go into, but for I prefer private company depending your business, because owning your own business is very good.

 

[Dagm1]

Each personal as well as collaboration are actually each great for company. Currently I'm the single proprietor of my company, however as it expands as well as broadens, I will certainly be actually available to collaboration handles potential. It is actually great to have actually various other palms placing funds in as well as various other goings carrying concepts in.

 

[Georgeadawara]

o 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.

 

[Ralphjoe]

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.

Well if I were to choose between a partnership business or a private limited company then I'll definitely go with the private limited company as it will definitely be bigger than a partnership firm.

 

[Setho]

I generally prefer to be in a partnership business because I believe that there is a likelihood that the decisions are going to be of much more quality.