I suggest partnership as the most suitable ownership for their new business. Following differences between strengths and weakness of partnership and limited company will be prove that partnership is the best option for Mr. Fernando and Mr. Perera for their new business. A partnership is commonly a business structure that formed by two or more people who expect to form business together. Sometimes partnership can be begins within two or more people who have a common business idea and skills that they aim to make a successful business. In some situations partnership will be the most logical option. Compare to other business structure it will be a good choice of legal structure to carry on a small business with a low turnover.The most important thing is partners can share their profits, liabilities and decision making among their partners. In a partnership partners will collect funds by their initial capital. They can collect more money by more partners and it will help to the business growth and the flexibility of the business. It also means more profits which will equally share between partners. In a partnership partners can share their responsibilities according to their skills. It will help to achieve successful outcomes from the business. More partners means more ideas for solving problems and can help each other when they need. Other important thing is this kind of business can easily form, manage and maintain. There are less regulations than companies and partners can continue their business under agreements of partners without any interference by shareholders like limited company.Thus we can point out many strength exist within partnership. Likewise strengths, there are some weaknesses that partners can be face during their business activities. As partners it is necessary to agree with things that are being done in such a situation and there are less freedom to take decisions as an individual, otherwise it leads to disagreements between partners and also each partner liable for actions by other partners. Last one is unlimited liabilities which bare by partners (Example: Financial risk). Limited company is a company whose liability is limited. The main strength of the limited company is the financial security. Shareholders are the only people who liable for debt. This reason will give a comfortable condition to the investors in the company. When consider about the weaknesses of limited company startup cost is comparatively high than the partnership. And also there are complex rules in accounts than partnership. In limited companies’ shareholders can’t raise the capital by sale of shares. Sometimes disputes will arise between director and shareholder as their ideas of what is best for the company vary. When consider about the above mentioned strengths and weakness of partnership and limited company it seems like it is better to form the new business as partnership. Well formation according to the procedures and rules of suggested business structure will give successful outcome to those two partners without any doubt.