A partnership is a type of business entity in which partners (owners) share with each other the profits or losses of the business. Partnerships are often favoured over corporations for taxation purposes, as the partnership structure does not generally incur a tax on profits (usually referred to as Dividend Tax) before it is distributed to the partners i.e. there is no dividend tax levied. However, depending on the partnership structure and the jurisdiction in which it operates, owners of a partnership may be exposed to greater personal liability than they would as shareholders of a company.
Some times companies also form partnerships. Two or more companies can form a legal partnership in pakistan to achieve common objectives through alignment of resources in pursuit of long term goals. Such partnering can be used as alternative to traditional mergers and acquisitions.
Like most countries in the world, First step for expansion for sole proprietors and sometimes the first step for businesses is the formation of a partnership in Pakistan. Partnerships may have small to medium sized business set-ups. Partnerships are normally formed where there is a desire to have some structural flexibility along with some formality of relationship between partners.
A partnership may be registered with the Registrar of Firms of an area where the office of the firm is situated or proposed to be situated.
If you have made your mind and thinking of forming/registering a partnership as this seems the only plausible option, then look no further for professional advice, contact Masood and Masood and we will do all the paper work for you. Services include:
- Registration of Partnership Name and or brand name
- Drafting Partnership deed/agreement
- Book keeping services
- A fully functional e-commerce website
- Legal opinions and Litigation support.
- Tax Planning and Tax Advisory
- and so forth
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