A simple partnership company, often referred to as a general partnership, is a form of business organization where two or more individuals (or entities) come together to carry on a business with a common goal of making a profitOwnership
In a general partnership, the ownership is typically shared among the partners. Each partner contributes to the business in terms of capital, labour, or skills. There is a requirement for a formal written agreement, although it's highly recommended to have a partnership agreement in place to clarify the roles, responsibilities, and profit-sharing arrangements.Liability
One important feature of a general partnership is that the partners have unlimited personal liability for the business's debts and obligations. This means that if the partnership is unable to meet its financial obligations, the personal assets of the partners can be used to clear the debts.Profits and Losses
Profits and losses in a general partnership are typically shared in proportion to each partner's ownership interest or as defined in the partnership agreement.Management
Partners in a general partnership often have an equal say in the management of the business, unless the partnership agreement specifies otherwise. Decisions related to business operations, investments, and day-to-day management are typically made jointly.Continuity
General partnerships can be relatively simple to form and dissolve. If a partner decides to leave or a new partner wants to join, the partnership agreement should outline the procedures for such events.
Benefits of Simple Partnership Company: