Company v/s Firm

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Querist : Anonymous

Querist : Anonymous (Querist)

18 March 2010 Dear Friends,

What is the benefit of forming of Pvt. Ltd.Company against the Partnership Firm. Why people go for forming a Pvt.Ltd.Company.

Also why Firm convert into Pvt. Ltd.Company, is there any specific reason.

Reply asap

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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18 March 2010 Main difference is that in case of a limited concern the liability is limited to the share capital subscribed while in case of a firm the liability of the partners is unlimited.

Because of this the cocept of Limited Liabilty Partnership(LLP) has been introduced.

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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18 March 2010 another point is legal compliance is very high compare to firm in the case of company.

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Querist : Anonymous

Querist : Anonymous (Querist)

18 March 2010 my main question is that what is the benefit(advantages & disadvantages) of forming of pvt.ltd.company against the firm.

Either partnership firm converted into limited company why?

I am seen many partnership firm converted into limited company why & what is the reason behind that? why they dont keep their firm as it is?

pls clarify the doubt i have many question abt this particular query.

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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18 March 2010 the reasons are depends on case to case,
mainly this are-
1. members limited liability,
2. separate Legal Entity,
3. Perpetual succession,
4. separate property,
5. Transferable shares,
6. Capacity to sue and being sued

Querist : Anonymous

Querist : Anonymous (Querist)

18 March 2010 sir is there any note on particular of my query.

i need the list of advantages, disadvantages of forming of partnership firm, ltd company & llp.

distinguish between partnership firm, ltd company & llp.

pls guide from where, all this things i will got the material.

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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19 March 2010 FOR BETTER UNDERSTANDING YOU REFER BOOKS LIKE CO. ACT, FORMING & MANAGEMENT OF A PVT. CO. ETC.

Querist : Anonymous

Querist : Anonymous (Querist)

19 March 2010 pls. give me perfect book name along with author name.

also tell me which book is better for refer & easiest to understandable.

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CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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19 March 2010 FOR THIS I REFER BOOK - "FORMING & MANAGEMENT OF A PVT. CO. ALONG WITH PROCEDURE", BOOK OF A NABHI PUBLICATION OR REFER OTHER BOOK LIKE THIS

Querist : Anonymous

Querist : Anonymous (Querist)

19 March 2010 can i get all my qestion of answer in this book?

what about the partnership firm & llp.

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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19 March 2010 now i don't have any books reference who provide compression of all three act in one place call your book seller or depot for the same he guide better