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DISTINCTTYPES OF BUSINESS ORGANIZATIONS UNDER THE EYES OF BUSINESS LAW

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SIR SHAHEZEB KHALID SUBMITTED BY: USMAN FAROOQ ROLL NO: L1S21BSAF0005 SECTION: (B) January 8, 2022 1|Pag e 1-THE DISTINCT TYPES OF BUSINESS ORGANIZATIONS UNDER THE EYES OF BUSINESS LAW Types: 1. Advantages of sole proprietorship: All earnings are subject to the owner There could be very little law for proprietorships Owners have full freedom while running the business Very few requirements for beginning-

DISTINCTTYPES OF BUSINESS ORGANIZATIONS UNDER THE EYES OF BUSINESS LAW

   Added on 2022-01-25

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UNIVERSITY OF CENTRAL PUNJAB
Business law
Assignment # 3
SUBMITTED TO: Pro. SIR SHAHEZEB KHALID
SUBMITTED BY: USMAN FAROOQ
ROLL NO: L1S21BSAF0005
SECTION: (B)
January 8, 2022
1. EXPLAIN THE DISTINCT TYPES OF BUSINESS ORGANIZATIONS UNDER THE EYES OF BUSINESS
LAW
2. ANALYZE THE ROLE OF INNOVATION
3. ENTREPRENEURSHIP IN A MARKET ECONOMY
DISTINCTTYPES OF BUSINESS ORGANIZATIONS UNDER THE EYES OF BUSINESS LAW_1
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1-THE DISTINCT TYPES OF BUSINESS ORGANIZATIONS UNDER THE
EYES OF BUSINESS LAW
Types:
1. Sole proprietorship
2. Partnership
3. Corporation
SOLE PROPRIETORSHIP:
The most straightforward and familiar shape of business ownership, a sole proprietorship, is an
enterprise owned and run by using a person for their very own gain. The enterprise’s existence
depends on the proprietor’s choices, so when the owner dies, he does the business.
In a Sole Proprietorship business in Pakistan, a person on their account consists of out the
commercial enterprise or profession. The commercial enterprise assets of the sole owner are
legally treated as his personal. No formal system or formality is needed to set up an exclusive
proprietary problem in Pakistan, nor is previous registration of it required from any authority
or branch.
Advantages of sole proprietorship:
All earnings are subject to the owner
There could be very little law for proprietorships
Owners have full freedom while running the business
Very few requirements for beginning—regularly most effective an enterprise license
Disadvantages:
The owner is 100% chargeable for business money owed
Equity is confined to the proprietor’s sources
Ownership of proprietorship is tough to switch
No distinction between non-public and business profits
DISTINCTTYPES OF BUSINESS ORGANIZATIONS UNDER THE EYES OF BUSINESS LAW_2
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PARTNERSHIP:
(Partnership Act 1932) A Partnership in Pakistan is a commercial enterprise entered into by a
formal agreement between two or more humans or businesses carrying on an enterprise is not
unusual. The capital for a Partnership is supplied via the partners responsible for the total
debts of the firms and who percentage the profits and losses of the business concern in
keeping with the terms of the partnership agreement.
Partnerships in Pakistan (aside from banking businesses) are typically limited in length to 20
partners. The hobby of an accomplice is transferable only with the earlier consent of the
alternative accomplice(s). However, an accomplice’s proper to a share of the partnership
income may be received in agreement with any other individual.
For taxation purposes in Pakistan, partnerships are classified into:
Registered firms and unregistered firms.
The income of the registered firm is subject to super tax before distribution to the partners.
Also, the individual income of the partners is subject to income tax at the usual rates.
For unregistered firms, income tax is levied on the firm’s income, and the partners are not
liable to pay tax on the shares of profit received from the unregistered firm(s)
AMLAW gives the undermentioned services within the subject of Partnership in Pakistan.
Consultation on a business call for partnership
Search availability of partnership enterprise name
Drafting of the partnership agreement
Registration of partnership
Drafting of deed of dissolution of partnership
Registration of deed of dissolution of partnership
Advantages of partnerships:
Shared resources provides more capital for the business
Each partner shares the total profits of the company
Similar flexibility and simple design of a proprietorship
Inexpensive to establish a business partnership, formal or informal
Disadvantages:
Each partner is 100% responsible for debts and losses
Selling the business is difficult—requires finding new partner
Partnership ends when any partner decides to end it
DISTINCTTYPES OF BUSINESS ORGANIZATIONS UNDER THE EYES OF BUSINESS LAW_3

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