![\"Advantages](\"http:\/\/www.solubilis.in\/blog\/wp-content\/uploads\/2015\/09\/What-is-joint-venture-and-partnership.jpg\")
<\/a>The advantages of company over partnership firm<\/h2>\n<\/p>\n
There are some points to be listed in the advantages of company over partnership firm are shown in the lists.<\/p>\n
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- The provisions relating to clubbing of income under section 64 of<\/span> the income tax act do not implement even if the business is carried on by family members through a company. This happens which a company conclusively leads to reduction in liability to tax on the part of the individual members with the advantages of company over their liability .<\/li>\n<\/ul>\n
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- The certain company under the section 45 of W.T. act 1957\u00a0is specified<\/span> wealth tax that are not liable, though the shareholders will be liable to wealth-tax on the value of their holdings.<\/li>\n<\/ul>\n
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- The dividends from any Indian company qualified for deduction under section 80M and 80L of the act to the subject limits specified therein.<\/li>\n<\/ul>\n
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- The companies are subject to a flat rate of tax regardless of the quantum of their income. The different tax rates are becoming<\/span> suitable to a widely held company and a closely held company.<\/li>\n<\/ul>\n
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- There are certain special tax concessions, allowances and deductions given under the income tax act only in<\/span> the company form of business enterprises.<\/li>\n<\/ul>\n
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- In a private limited company,<\/em> the number of members can be up to fifty excluding its present and past employees. In a public limited company registration,<\/em> there is no restriction on such number of members. In case of a partnership carrying on banking business the maximum numbers of partners can be ten and in case of any other business twenty.<\/li>\n<\/ul>\n
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- A company has a different legal entity specific from the members who constitute it. A partnership is called as a firm that has no legal presence apart from its members. This means that partners and firm are one and the same.<\/li>\n<\/ul>\n
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- The liability of the partners<\/span> is unlimited in a company. The liability of shareholders is usually unlimited. However, the law does not prevent a company from rendering the liability of members unlimited of a company.<\/li>\n<\/ul>\n
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- The shares of a company are freely interchangeable. <\/span>But in the type of a<\/span> private limited company registration <\/em><\/a>of the articles define the rights of members to transfer their shares. <\/span>In a partnership firm, a partner cannot transfer his share without the approval of his co-partners.<\/li>\n<\/ul>\n
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- In a company their restrictions in the articles are effective as there is constructive notice of the directive and articles for every person who deals with the registration company<\/em>.But in the instance of a partnership their restrictions on a members authority contained in the partnership deed are of no avail against outsiders.<\/li>\n<\/ul>\n
- The shares of a company are freely interchangeable. <\/span>But in the type of a<\/span> private limited company registration <\/em><\/a>of the articles define the rights of members to transfer their shares. <\/span>In a partnership firm, a partner cannot transfer his share without the approval of his co-partners.<\/li>\n<\/ul>\n
- The liability of the partners<\/span> is unlimited in a company. The liability of shareholders is usually unlimited. However, the law does not prevent a company from rendering the liability of members unlimited of a company.<\/li>\n<\/ul>\n
- A company has a different legal entity specific from the members who constitute it. A partnership is called as a firm that has no legal presence apart from its members. This means that partners and firm are one and the same.<\/li>\n<\/ul>\n
- In a private limited company,<\/em> the number of members can be up to fifty excluding its present and past employees. In a public limited company registration,<\/em> there is no restriction on such number of members. In case of a partnership carrying on banking business the maximum numbers of partners can be ten and in case of any other business twenty.<\/li>\n<\/ul>\n
- There are certain special tax concessions, allowances and deductions given under the income tax act only in<\/span> the company form of business enterprises.<\/li>\n<\/ul>\n
- The companies are subject to a flat rate of tax regardless of the quantum of their income. The different tax rates are becoming<\/span> suitable to a widely held company and a closely held company.<\/li>\n<\/ul>\n
- The dividends from any Indian company qualified for deduction under section 80M and 80L of the act to the subject limits specified therein.<\/li>\n<\/ul>\n
- The certain company under the section 45 of W.T. act 1957\u00a0is specified<\/span> wealth tax that are not liable, though the shareholders will be liable to wealth-tax on the value of their holdings.<\/li>\n<\/ul>\n