At initial level, Business plays a vital role in anyone’s life to earn a daily bread at least. But that is not enough to flourish your business and growth is the dream of many. And most of the time when entrepreneur had not capable enough to meet both the ends all alone. Either it is related to investment or its about giving time and energies to business. That is the point where he wants to join as someone as their business partner. Or they start their business mutually from the very beginning.
Starting your business within partnership is quite exciting yet it has some cons as well. That is why, one should not hurry to start their partnership without noticing the facts of partnership and should take advice from Business Setup Consultants in Dubai.
So, for some beginners the question arises what exactly the partnership is?
Let me tell you, A business Partnership is basically an official decree or agreement which is made by two or more alliance to work together as a company or being an investor and worker.
There are few types of business which are as follows
- The first and foremost type of business partnership is General partnership which is very common amongst so many business modules. You can say if two people talk generally, lets open a shoe store together on half and half of everything including name. This is the basic type of business partnership.
- Limited partnership it is the legal type of business partnership which is authorized by state on business commodities.
- Partnership against limited liabilities
- Partnership and liabilities both are limited.
Main factors to think about before getting into business partnership in Dubai:
Business partnership is a common form of business in this era of business and technologies. And it is definitely coming up with pros and cons both. And there is no second thought that, Dubai being a business hub and easiest place to start your own business is attraction for every entrepreneur. So, here I am going to share few points that is really important to focus before starting your business partnership.
- Focus upon the business requirement and values:
partnership is exciting but only ones when both the partners have same interests, values related to your startup. It is not necessary that both partners should have 100% similar thought and ideas at every point nut conflict at every by and now is something which weakens the bond and trust levels. You and your partner must know what exactly you both want to bring out from your business.
- Clarify the roles and responsibilities from the very beginning:
Partnership is quite similar like a marriage in many terms. and there are loads of things that need to be done on time. everyone cannot do everything, that is why assigning the roles beforehand is wise thing to do in partnership. How much time both individuals are going to commit for there business? What is the job description and assigned task to perform? For solving any sort of problem, they are obliged to communicate to each other rather discuss with some third party.
3. Plan how the business finances are going to manage?
The basic target of any business partnership to increase or multiplies the profit with teamwork and brainstorming. are both partners okay to add their personal incomes for business growth at any point of business journey? Once the business start to payback, are both partners in favor to reinvesting the profits or working as salary-based partners? What will be an annual reinvestment?
4. Choose the most suitable legal partnership type:
As we discuss earlier, about types of business partnership. So, both the partners should decide with mutual understanding, for what type of partnership they going to follow in their business? Either it is legal partnership, general partnership, or limited liabilities partnership
5. Exit or accidental death of any partner:
This world and all its matters are not forever or eternal. Similarly, even the bets partnership is going to be end at any moment of time. so, it is wise thing to plan what will be exit plan and what if any of the partner is going to die, what will this business going to offer in any of this case? What will be the retirement provisions? How and when paying of the pending profits to the family of deceased?
6. Agreement must be in written form:
This is the most important part to perform. Do not start your partnership on verbal dealing or communications only. Even you and your partners are friends or relatives you must do all the paperwork, legal agreements, and attorneys to safeguard yourself from future disasters or conflicts. For making all these documents and attorneys you may contact the best Business Setup Consultants in Dubai for protecting the rights of partners in the most decent way.
If you are planning to open a joint venture in Dubai or need consultancy related to your projects, Elite business setup is here to give you best consultancy services with wide range of other services related to business setups in Dubai.