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Jack and Jill are partners in a company called "Fanfare boutique". They are considering to incorporate...

Jack and Jill are partners in a company called "Fanfare boutique". They are considering to incorporate this partnership company. Advise them regarding the effects of incorporation.

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Answer #1

Partnership Firm :- “Partnership is the relation between persons who have agreed to share the profit/loss of business carried on by all or any one of them acting for all.” Partnership firm and firm's name Persons who have entered into partnership with one another are called individually.

Procedure of Incorporation of Partnership firm:-  

1. Apply to the registrar of firms in the prescribed form.

2. A duly signed copy of the partnership deed (partnership deed contains all the basic terms & conditions)

3. Payment of necessary fees and stamp duties.

Effects if incorporation-

1. Flexibility in operations

2. Better management.

3. Sharing of risk with other partners

4. Larger resources

5. Easy Formation

6. Facility of loan

7. Easy to start

8. Effective management

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