Understanding in Partnership

1. A partnership is a business combination of 2 to 20 partners with the aim of making a profit.

2. When in partnership with banks and stock brokers, the number of partners should not exceed 10 people.

3. In professional partnerships such as law firms, accountants, engineers and medical, the number of partners cannot be limited.

4. Partnerships contribute to capital, knowledge, skills, and experience to business success.

5. Gains or losses are shared according to the conditions in the Partnership Agreement that are mutually agreed upon and signed together.

6. Sharing is easy to establish when compared to limited companies because there are not many rules and restrictions. The registration process is also easy. Sharing must be registered with Business Registrar.