What is a Limited Partnership?

A Limited Partnership is a partnership consisting of a general partner, who manages the business and has unlimited personal liability for the debts and obligations of the Limited Partnership, and a limited partner, who has limited liability but cannot participate in management.

What are the differences between a general partnership and a Limited Partnership?

A Limited Partnership offers protection from liability for the debts and obligations of the Limited Partnership to the limited partners. In a General Partnership, all of the partners are jointly and severally liable for the debts of the partnership.

How are Limited Partnerships taxed?

The Limited Partnership is taxed as a partnership. Each partner reports his or her share of profit or loss on his or her individual tax declaration.

How many owners are required to form a Limited Partnership?

At least one.

What Is A Joint Stock Company?

Joint Stock Company (JSC)is a legal entity that has capital divided into a certain number and certain types of shares defined by the company charter. A JSC’s liability to creditors is limited only by its assets. Shareholders are not liable for the company’s liabilities. The capital of a JSC can be any amount.

What Do You Mean By Common Seal Of A Joint Stock Company?

A company lives its own name but it cannot sign its documents like natural person so a seal with the name of company is used instead of signatures.

What Is The Liability Of Share Holders In Joint Stock Company?

Liability of shareholders in Joint Stock Company is limited up to the value of shares purchased.

Can Share Holders Transfer Their Shares Of Joint Stock Company?

Yes, they can transfer their shares though stock exchange.

Is There Any Restriction On Maximum Number Of Share Holders In Joint Stock Company?

There is no limit on maximum number of shareholders in Joint Stock Company.

What is General Partnership?

General Partnership (GP) is a legal entity in which two or more persons carry out entrepreneurial activities jointly under a single entity name. Partners are jointly liable to creditors with all their property. The liability of a partner is not limited.

Are there special rules for running partnerships?

Unlike corporations, partnerships are relatively informal business structures. Partnerships aren’t required to hold meetings, prepare minutes, elect officers, or issue stock certificates. Generally, partners share equally in the management of the partnership and its profits and losses, and assume equal responsibility for its debts and liabilities. These and other details are typically described in a partnership agreement.

Is a written partnership agreement required for every partnership?

No law requires partners to create a written partnership agreement, but it’s wise to do so. But creating a written partnership agreement will give you and your partners a chance to discuss your expectations of each other, define how each of you will participate in the business, and help you work out any sticky issues before they become major problems.

Are owners of a partnership personally liable for business debts?

Legally, a partnership is inseparable from its owners. As a result, each partner (with the exception of the limited partners in a limited partnership) is personally liable for the entire amount of any business-related obligations. This means that if you form a partnership, creditors can come after your personal assets (such as your house or car) to make sure any partnership debts get paid.
In addition, you are legally bound to any business transactions made by you or any of your partners, and you can be held personally liable for those actions. For example, if your partner takes out an ill-advised high interest loan on behalf of the partnership, you can be held personally responsible for the debt.

What happens if one partner wants to leave the partnership?

Before you go into business together, you and your partners should decide what will happen to the partnership when one partner retires, dies, or wants to leave the partnership for some other reason, such as a bankruptcy. You might feel like you’re being overly cautious or pessimistic, but it almost always makes sense to include “buy-sell” provisions in your partnership agreement to deal with these issues.

What is  a Branch Office ?

A Branch Office is a business which is commercially independent from a Head Office. The Branch Office is legally dependent on the Parent Company. It carries out the same type of activities as the Parent Company and in doing so has commercial independence.

What is the role of a Branch Office ?

The Branch Office’s role is to carry out the same business activities as that of the Parent Company in locations other than that of the Head Office.

What are the advantages of setting up a Branch Office ?

• The Branch Office is useful for gaining an understanding of the local market where it is situated.
• A Branch Office is cost efficient, with less tax liability due to small annual turnover and has less overhead costs due to its size.
• Having a Branch Office creates more trust among local customers. It gives the customer greater confidence in the Company.