A registered partnership occurs when two parties agree to enter into business venture together. They share the costs associated with running that business and investing into it, and they also share the profits from the business. It’s a give-and-take operation that requires two entities to work together and share in the risks and the benefits. 

There is a lot to consider before taking part in this kind of business venture. For those wondering if it might be right for them, let’s look at some of the pros and cons of a registered partnership.

Pros

On the plus side, it’s worth noting that registered partnerships get equal profits. No matter what the business or how much it takes to invest in, when the profits start rolling in, both parties benefit equally. This isn’t based on skill, resources, for merit, but it’s an equal sharing of the profits so long as there is an equal monetary investment.

The registered partnership or จดทะเบียน หจก minimizes risk for both sides. Instead of one person having to take on all the risk, it is spread between two parties, reducing its severity. With less risk involved, that means people who would be a little hesitant to jump into a business might be more likely to do so. If the business fails, the impact on individual partners is not as serious. In these economically uncertain times we live in, that’s a major benefit for this type of business venture.

The registered partnership also improves accountability and transparency in aspects of:

  • finances 
  • debts
  • profits
  • payroll
  • purchases
  • and resources

Both parties are typically privy to everything the company is doing, how it’s spending money, how it is growing, and where it is headed.

One of the advantages of this type of partnership is that both partners bring something unique to the table. They have their own experiences, expertise, and knowledge that they can utilized to help the business grow. It is vital that a pairing like this be considered carefully so that there is a balance between what the two partners are able to contribute. 

Cons

There are definitely some drawbacks to this type of business partnership as well. Let’s look at some of those so that you can understand what challenges you might be facing going into this business model.

One of the biggest difficulties this type of partnership struggles with is shared responsibility. Many times, it can be difficult to get both parties on board to be providing funds and resources at an equal level for the business. Often, one business partner will be doing more and giving more than the other, an apartment giving less may need to be motivated to do their part to step up.

Another hurdle that this type of business operation faces is a lack of funds. Sometimes one partner may have trouble providing their half of the investment. Once again, you may end up with that unevenness where one partner is doing more than the other. When both partners cannot provide enough funding to get the business going or to move it to the next level, that can stagnate growth and keep the business from even getting off the ground.

The registered partnership can also run into problems where one business partner is less experienced or less knowledgeable than the other. While decision making is often supposed to be a shared responsibility in this partnership, that may not always be most beneficial. When one partner has much more expertise than the other, partnerships may rely on a single partner more for their expertise, or there may be a power struggle back and forth when it comes to the decision-making process.

Closing Thoughts

This isn’t the kind of partnership that anyone should be entering into lightly. When two parties agree on the idea of the partnership, they should take a few weeks to look over each other’s resources, abilities, and experiences to consider if the partnership may be equally beneficial. If they don’t, they could find that there is a large imbalance in the partnership and that one side is doing a lot more than the other, despite the framework of a registered partnership.

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