1. A
partnership is governed by the Partnership Act, 1932
2.Registration: The
registration of a partnership concern is not compulsory. There are certain
privileges given to the registered firms which are denied to unregistered ones.
These privileges indirectly encourage registration.
3.Number of Members: A
partnership can be started by at least two persons. The maximum number is ten
in case of banking and insurance business and it is twenty for any other
business.
4. Legal Status: A
partnership has no separate legal entity apart from its members. Members cannot
enter into an agreement with the firm.
5. Liability: The
liability of partners is unlimited. The partners are jointly and separately
responsible for the liabilities of the business.
6. Transfer of Shares: A
partner can transfer his share only with the consent of all other partners.
7. Management and Control: A
partnership concern is managed and controlled by the partners. The partners
have a right to participate in the administration of business.
8. Statutory Obligations: A
partnership is not under statutory obligation fro the compliance of any rules
and regulations. There is no compulsion to maintain certain books, get the
accounts audited and to publish them.
9. Continuity: A
partnership concern is dissolved on the death or insolvency of a partner.
10. Authority of Members: A
partner can bin the firm by his acts. There is an implied authority. A partner
is an agent of the firm.
11. Winding Up: A
partnership concern can be dissolved easily. No legal formalities are required
for winding up a partnership firm.
Private Limited Company
1. Private
Limited Company is governed by the Companies Act, 1956
2. Registration: The
registration of a company is compulsory. There are two stages in registering
private limited company, the first is ‘Incorporation’ and the second is
‘Commencement of Business’. A private limited company can start business after
obtaining certificate of incorporation.
3. Number of Members: There
must be at least two persons for starting a private company and maximum number
of members can be fifty.
4. Legal Status: A Private Company has a
separate legal entity. It has a common seal and can enter into contracts by
affixing its seal. Members of the company can also enter into contract with the
company.
5. Liability: The liability
of shareholders is limited to the value of shares held by them. The members are
not personality liable for the obligations of the business.
6. Transfer of Shares: A
shareholder can sell his shares whenever he feels so. There is no binding no
the transfer of shares of a company.
7. Management and Control: A
private company is managed by elected representatives of the shareholders.
8. Statutory Obligations: A
private company is required to maintain prescribed books and have a periodical
audit. Some information has to be supplied periodically to the Registrar of
Companies.
9. Continuity: The
continuity of a company is not affected by the death or insolvency of a member.
The members may go on changing but the company will not be affected.
10. Authority of Members: A shareholder
has not implied authority to bind the company. A shareholder cannot act on
behalf of company.
11. Winding Up: A
private company is wound up only through court. If the court is satisfied that
there is a reasonable ground for winding up the company only then it is to be
wound up. A proper procedure is also to be followed.
How to do Private Limited company registration in Pakistan?
Although many detailed articles are present on the website that
explain the process of company registration in Pakistan. However based on the
feedback received from our clients this article will summarize the process of
company registration in Pakistan.
The process of company registration in Pakistan is explained
below:
Name Availability Application
The first step in company registration is to make an application
to the registrar of companies for confirming the name selected is available and
he has no objection with respect to the name applied.
Application to NIFT for Digital Signature
The next step is to make an application to the NIFT for allotting
the digital signature of each director of the company. Separate application is
made for each director.
Submission of documents
Once the digital signature for each director is received the next
step is to prepare and submit following documents for company registration.
Memorandum of association
Articles of association
Form 1
Form 21
Form 29
Name Availability Letter
ID Cards scanned
Submission of fee for company registration
Once all the above documents are submitted for company registration
the last step is to submit the fee for company registration which depends on
the amount of capital.
After submission of fee normally after 4 to 5 days we receive
confirmation from the Securities and Exchange Commission of Pakistan of company
registration if they have no objection on the documents submitted and they find
documents complete and in order.
