A partnership is a business entity consisting of at least two people who aim to manage a business by pooling their resources and property into a common fund. The profits and losses of the company are shared between the partners. There are two classifications of partnerships: general and limited. Before starting a partnership, it’s essential to know the difference between the two business structures to pick the one that suits your business the best.
Classification of Partnerships in the Philippines
- In a general partnership, all partners have an equal part. Each partner must manage the company and make business decisions. All partners have equal responsibility regarding the duties and debts of the company.
- Limited partners act more or less as investors in the business. They do not make decisions concerning the company. In this type of partnership, some partners are held accountable only to the extent of their capital contributions.
Establishing a partnership has its pros and cons. Read them below:
Learning the process, time, and effort of starting a partnership business may be challenging. We suggest you contact the experts.
Business Registration Philippines is a website dedicated to helping investors, business owners, and other stakeholders establish and incorporate their enterprises. Topics range from Accounting, Finance, Human Resources, Business Process Outsourcing, Product Registration, Taxation, and more. It is a microsite of Triple i Consulting Inc.
Triple i Consulting’s knowledge and skills in business establishment, Philippine incorporation, and the Philippine taxation system date began in 2007. Specializing in accounting, business registration, business incorporation, FDA licensing, and FDA product registration, Triple i Consulting is the first ISO 9001:2008 company in the Philippines to offer business registration services to its clients.
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