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Is it better to have a partnership firm or Pvt ltd
You can have any type as per your convenience be it proprietorship or partnership or the pvt ltd, the types of legality will decide the nature of your business and also the longer vision that you have, lets analyze each of the structures.
In proprietorship you do not have many compliances and you can run as per your wish and your own ways the problems are you cannot raise funds or banks giving loan does not happen as the liability is only with you and tomorrow if anything happens to you then there is only you responsible for everything.
In partnership both the partners as per the partnership agreement will be responsible though this type of companies are more it also comes with problems as sometimes in partners one may be sleeping partner and the other active partner so the major disagreement arises as both of them are not contributing and also usually in partnership firms it is both partners investing and both suffering losses in case any happens. This leads to a lot of conflict of interest and raising funds for this company is not possible.
In OPC which is latest format where in one person company where in all the type is of proprietorship but all the legality and compliances are as same as pvt ltd firm, the only disadvantage is you will be only person holding 100% shares and you cannot raise funds and dilute your stake.
The last option is pvt ltd, which ensures that you follow compliance with your tax, legality and every aspect of law of the land needs to be followed. This pvt ltd is more preferred by investors for investment and raising funds. You need to be a pvt ltd and this type of company is monitored and bound to adhere to norms as and when changed by the ministry of commerce.
Though the Pvt ltd comes with a lot of compliances it is always the best way to run the business as you scale you can bring in investors and you do not own any debt beyond the amount shown as value when registering your company. So your personal assets do not get attached to the company in case the company runs under losses.