Profits and losses are shared among the partners according to the formula agreed by both parties in the partnership deed. The procedure of registering a partnership business is almost the same as sole proprietor except that in partnership business a partnership deed is provided.
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Forum Articles. Conditions et confidentialité Aide Nous contacter. The partnership deed normally contains the following particulars The name of the firm or partnership The names and addresses of partners The nature or type of the business The duration of partnership. The amount of capital to be contributed by each partner. The amount and nature drawings that can be made by each partner.
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The interest to be allowed on capital and charged on drawings. Rights and responsibilities of partners. Duties of partners. Remuneration to partners. The ratio of the profits or losses shared among the partners. The basis and rationale for the calculation of goodwill during the time of admission, retirement, and death of a partner.
The keeping of proper books of accounts and the preparation of Balance Sheet. Settlement of amount upon the dissolution of the firm. The procedures and processes to be adopted in the case of disputes among the partners.
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Arbitration clause in case of dispute or disagreement. The advantage of registering a Partnership business as compared to sole proprietorship is that in partnership, you can apply for any tender without much restrictions as your business has a KRA pin. Upon registration, a limited liability partnership becomes a body corporate with perpetual succession and acquires a separate legal entity personality from its partners and therefore any change in its partners does not affect the existence, rights or obligations of the limited liability partnership.
On the other hand, The limited liability partnership, under section 7 2 of the LLP Act, is required to maintain and use a common seal that bears its name to be utilized to execute all documents that are required by law to be sealed by it.
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Under section 22 of the Partnership Act, the liability of a partner in a general partnership is unlimited. Accordingly, a partner is personally liable recherche fille pour coucher the whole amount of any obligation incurred by the partnership while he is a partner.
Accordingly, their personal assets could be used to settle business debts if and when becomes necessary.
A limited partnership on the other hand has two types of partners known as general partners; and limited partners. The liability of general partners is unlimited. The liability of a limited partner is limited to the extent of the amount contributed by the partner to the partnership at the time of joining the partnership.
The liability of all partners in a LLP is limited. In addition, a partner in a LLP is not personally liable for the wrongful act or omission of another partner of the LLP. The liability of partners of a LLP differs immensely from those of the general partnership and the limited partnership. However, the liability of a limited partner in a limited partnership is similar to that of a partner of a LLP. The difference between a LLP and a limited partnership is that the latter is required to have general partners so that the liability of all its partners is not limited like the LLP.
All partners in a general partnership have the entitlement to participate in the management of the partnership business. In a limited partnership, all general partners can participate in the management of recherche fille pour coucher business of the partnership. However, a limited partner is prohibited under section 58 1 of the Partnership Act from taking part in the management of the business of the partnership.
On the other hand, a LLP is required to have a manager to manage the day-to-day activities of the business. A LLP is commonly said to be a quasi-partnership.