Legal Form of a Business

Sole Proprietorship

A business owned by one person who bears unlimited viability for the enterprise.
Easy to form.
Proprietorship and proprietor are same entity.
Small scale
Tax on proprietor's income
Unlimited lability

Partnership Firm

A legal entity formed by 2 or more co-owners to carry on a business for profit

Partnership at Will

Life of the partnership depends on the will of the partners.

Particular Partnership

Partnership formed for a particular purpose. It dissolves as the purpose is achieved.

Limited Partnership

The liabilities of the partners is limited to the amount of their capital but one partner must have unlimited liability.

Limited Liability Partnership Act, 2017
Weblink: http://www.na.gov.pk/uploads/documents/1495167657_973.pdf

Governing law for partnership Partnership Act, 1932
Weblink: https://www.sja.gos.pk/assets/BareActs/PARTNERSHIP%20ACT.1932.pdf

Corporation (public or private)
Non-profit Organization

(discussed in the following lecture).