Registering a business with partners (LLP)

Types of partnerships:

As the nature of different companies varies a lot. Same is the case with the type of relationship the partners of these companies has. The most common example of partnership is that two people are working for the progress of a company and they get an equal share of the profit.

Apart from this type of partner relationship, there are some companies who has sleeping partners or the financial partners. They don’t work for the company but provide their shares in some other forms. Another form of company partnership includes the partnership in which both of the parties has to perform different tasks and they have different obligations and shares when it comes to the tax payment.

Registering a business with partners:

To register a company that has partners in it, there are some requirements to fill in the memorandum and the articles of association. This requirement can be fulfilled with the help of a company agent or legal advisors. The registration process will be done by filing an application in the Companies House with all the required documents that are legally approved. You can download them and fill up or you can also post the required information to the specified department. If you have any confusions in your mind regarding the issues of the registration process, you can always get some help of an accountant or a solicitor.

Partnership contract:

Every company that will work on the basis of partnership has the requirement to include a legal contract of partners. Registering a business with partners has specified steps that make everything much clear. By developing a legal contract for the partners, you will be able to draw a line. This contract will contain all the important information and policies that will highlight the rights of each partner.

The contract of the partnership may also address some important issues like the amount of profit each partner will get and the things to do in complicated situations. It should also state the policies about leaving and breaching the contract. If you are having any confusions in the registration process, you can always get some legal advice.

These were the important things you needed to know about registering a business with partners. Make sure you have well defined rights in your companies. In this way, you will be able to avoid any complication that will be the best thing for the progress of your company.