Partnership Firms

Concept of Partnership Firm and Partners, Characteristics, Merits and Demerits of Partnership Firm. Types, Rights and Duties of Partners, Difference between Sole Trading and Partnership Firm. Partnership deed: meaning and contents, Registration and Renewal of Partnership Firm in Nepal, Dissolution of Partnership firm in Nepal

Notes

Concept and Characteristics of Partnership Firms

partnership is business is an agreement between two or more than partners to do a legal business.They agreed to provide all the resource required for business for the purpose of earning profit.Those people who invest money in the partnership are called partner.A partner may be directly involved in the business are called the active partner or a partner only invest in the business is called sleeping partner.Before establishing a partnership business, a partner sits together to discuss the different matter related to business.

Types, Right and Duties of Partner

The partner who has invested more in partnership business and directly involves in business activities is called active partner. The partners who have invested money but involve in business activity is called sleeping partner.The partner who has invested money but nominated as a partner is called nominal partner.The partner who is retired from business but investment is not written is called quasi-partner.

Partnership Deed

Partnership deed is the legal agreement between the partners before starting the business. The partnership is started by the agreement between two or more people. The written agreement is made to solve a probable future dispute. Partnership deed asks as the evidential document for registration.

Advantages and Disadvantages of Partnership Firm

A partnership form can be started by making the agreement between partners and registration concern department of Nepal government. This business does not require complex legal procedures for an establishment.