Let us first go through this data published Professional Development Committee ICAI February-2019 edition, where almost 70% of CA practicing as a Proprietorship firm and around only 3% partnership firm having more than 6 partners.
There are numerous benefits of Partnership Firm for Professionals: -
Ease for Clients: -
Now a days Time is money, nobody has time to deal with so many Professionals and hence client prefers one stop solution for his all problems. Therefore, a multidisciplinary firm is best format to grow fast where client can get one window solution for his majority of work.
Synergy Benefits: –
· To handle Big tasks, A Big team is required and that is possible through Partnership Firm only.
· The diversity of work is increased so much and Laws are changing very fast that it’s not possible for an individual to have all information on his own therefore partners can use each other’s expertise and perform work with Quality in a given time.
· Exchange of client’s work leads to the tremendous growth of an Individual. For Example, A Chartered Accountant enters into partnership with Company secretary hence all corporate compliance work can directly have diluted to CS and vice-a-versa.
Mandatory for Certain Audits: -
While Approaching for Bank Audits and Audits of PSUs their mandatory requirement includes minimum years of experience and minimum number of partners therefore if you are not a Partnership Firm even you are not eligible to empanel yourself.
As a person, you cannot sell yourself but instead, you can sell Brand name of Your Firm. If at some time if you want to retire you can sell your share and encash your goodwill as well.
All These benefits also come with a few problems as following: -
· Trust and confidence in your partner is a first and most important requirement of Partnership Firm.
· Partnership is all about Teamwork if you do not know how to work in a team it is very difficult for you to work. You have to shift from ‘I” to “WE”.
· Management is also one of the crucial part as it is quite difficult to manage such an intelligent brain under one roof.