COMPARISON OF VARIOUS FORMS OF ORGANISATIONS

Sr.No. FEATURE SOLE PROP. PARTNERSHIP COMPANY H.U.F.

1 FORMATION EASIEST PARTNERSHIP DEED REQD. INCORPORATION BY R.O.C. REGISTRATION

2 CLOSURE EASIEST DISSOLUTION DEED REQUIRED LIQUIDATION BY R.O.C. DIVISION OF PROPERTY
3 CONTINUITY OF BUSINESS DISCONTINUOUS DISCONTINUOUS CONTINUOUS DEPENDS ON MALE OFFSPRINGS
4 PERSONAL INTEREST MAXIMUM REGULAR AS PER PARTNERS SHARE LESS SINCE MGMT & OWNERS SEPT. MAX SINCE FAMILY INVOLVED
5 PERSONAL TOUCH MAXIMUM REGULAR AS GIVEN BY PARTNERS LESS SINCE MGMT & OWNERS SEPT. MAX SINCE FAMILY INVOLVED
6 CONTACT WITH CUSTOMER DIRECT DIRECT INDIRECT DIRECT
7 BUSINESS SECRECY MAXIMUM SHARED BY PARTNERS NO SECRECY SECRET AS SOLE PROP.
8 PROFIT SHARING NONE BETWEEN PARTNERS BETWEEN SHAREHOLDERS FOR FAMILY , NIL FOR KARTA
9 DECISION MAKING QUALITY POOR NORMAL GOOD POOR
10 DECISION MAKING TIME FASTEST FAST SLOW FAST
11 FLEXIBILITY OF ORGN. FLEXIBLE DEPENDS ON PARTNERS DEPENDS ON ART.& MEM. OF ASSOC. FLEXIBLE
12 ADMINISTRATION EXPENSES LOWEST HIGH HIGH LOW
13 LIABILITY OF OWNER UNLIMITED UNLIMITED LIMITED UPON KARTA UNLIMITED
14 FINANCE AVAILABILITY SCARCE DEPENDS ON NO. OF PARTNERS UNLIMITED LIMITED
15 TAXATION ON INCOME SINGLE DOUBLE DOUBLE SINGLE, MAX BENEFIT
16 RISK OF BUSINESS MAXIMUM DILUTED LEAST HIGH
17 CONTACT WITH SOCIETY POOR DEPENDS ON WORKLOAD POSSIBLE POOR
18 LEGAL STATUS NONE RECOGN. SEPARATE ENTITY RECOGNISED
19 GOVERNMENT REGULATIONS LEAST MORE MAXIMUM SAME AS S.P.
20 ACCOUNTING & AUDIT REGULAR REGULAR AUDIT COMPULSORY AUDIT COMPULSORY
21 EMPLOYEE RELATIONSHIP GOOD GOOD POOR GOOD
22 MANAGEMENT TYPE SINGULAR /LINE SINGULAR /LINE COMPLEX/SCALAR SINGULAR /LINE
23 DIVISION OF LABOUR NOT POSSIBLE DEPENDS ON NO. OF PARTNERS SPECIALISED AREAS OF WORK DIV. DEPENDS ON NO. OF FAMILY MEMBERS
24 BUSINESS SIZE SMALL, SINGLE SMALL, DEPENDS ON NO. OF SINGLE , SAME AS S.P.
OWNER,RESTRICTED PARTNERS & RESTRICTED TO NO SIZE LIMIT, NO SHAREHOLDER LIMIT
TO COMMUNITY CITY/DISTRICT TO LARGE ORG. PVT LTD. N.M.T. 50
25 CONTRIBUTION TO ECONOMY DIFUSION OF POWER LOW LIFE SPAN CONC. OF POWER, WEALTH DECLINING ROLE IN ECONOMY
UNECONOMIC SIZE GOOD FOR ECONOMIC GROWTH GOOD FOR ECONOMIC GROWTH PRIVILEGES OF HINDUS ONLY
SOCIALISTIC COMPROMISED STRUCTURE CAPITALISTIC TAXATION BENEFITS, UNECONOMICAL SIZE
SELF EMPLOYMENT SELF EMPLOYMENT HIGH RISK VENTURES POSSIBLE FLEXIBLE