Updated: May 29
An agreement between two (2) persons but not exceed twenty (20) persons to carry on a business in order to make a profit.
Quick and painless registration procedures
The business made no tax payments.
Less formal business obligations
Simple procedure for winding up
The cost of compliance is lower each year
Can raise more capital
More skills & knowledge
Share the work amongst partners
Profits must now be shared
A partnership is not a Separate Legal Entity, so partners have the risk of being sued
Disagreements can occur, they are not permitted to kick anyone out of the business unless the authority to do so was established in a legally binding document at the time the business was established [Partnership Agreement]
Partners are unable to act on their own.
Each partner is responsible for disclosing, within their own individual tax return, the amount of profit they personally received from the business.
分歧可能发生，他们不允许将任何人踢出合伙企业，除非在合伙企业成立时，在具有法律约束力的文件中规定了这样做的权力 [即：合伙协议，英文 - Partnership Agreement]
In the absence of a Partnership Agreement
According to the Partnership Act 1961, in the absence of a partnership agreement:
All partners contribute equal capital
Profits or losses will be shared equally
Partners are not entitled salaries
Partners are not entitled, before the ascertainment of profits, to interest on the capital subscribed by him
No change may be made in the nature of the partnership business without the consent of all existing partners
No majority of the partners can expel any partner
Partners are entitled to 8% interest on a loan they make to the partnership