PARTNERSHIP FIRM REGISTRATION
Partnership is the association of two or more persons. Partnership firm registration is not compulsory,However,unless a partnership firm is registered with the Registrar of Firms, the rights of the partners inter se or against strangers cannot be enforced in a court of law. Partnership firm are taxed separately and there is need to file separate income tax returns for your business.The major disadvantage, of course, is that the partners of a partnership firm are fully liable for the debts and obligations of the partnership. If your company is sued, then each partner will have to pay the damages and attorneys fees – and if the damages are steep, you could lose your shirt – and your house.A limited partnership is similar to a general partnership except that the limited partners are only liable for what they put in to the partnership. Limited partners are like investors into the partnership – they can only lose what
they invest. However, limited partners are not allowed to have any say in the management of the partnership. So to take the benefit of limited liability, open a company.
PROPRIETORSHIP FIRM REGISTARTION
When the business is owned and controlled exclusively by a single person. it is called sole-proprietorship, It is started through the initiative of the proprietor and is runwith the capital provided by him or through borrowed funds. The proprietor manages the business himself, bears all the risk alone and gets all the profits. In this type of firm, the proprietor can apply for the pan card in his name or in the name of the firm. There is no restriction on the name of the pan card. He is free to choose any line of business and take any action with the some legal formalities,as applicable.