Partnership Registration

What is Partnership Firm?

A partnership firm is a well-recognized business structure formed with mutual consent of all the partners for a profitable purpose. Partnership firm represents a business entity that is formed with a purpose of making a profit from the business. Two or more parties come together with a formal agreement (known as Partnership Deed) to own and manage the business.

Partnership firms are not separate legal entity while the partners are. A partnership firm cannot be debtor or creditor and cannot own a property .The property, debit or credit of a partnership firm is actually for the partners in the eyes of law

Choose Partnership because

1. Partnership registration is very easy.
2. It has minimum compliance requirement.
3. Partnership registration is inexpensive as compared to LLP.

Benefits of Partnership Firm

Why Partnership registration?

• Audit not required

• Easy to establish

• Relatively Inexpensive

• Minimal compliances

Minimum requirements for partnership registration

• No fixed minimum capital requirement

• Minimum 2 partners

Registration procedure of partnership firm

Step1: In step first select an appropriate name for the firm.

Step2: In step second the applicant has to file an application I form 1 of partnership firm registration.

Step3: In step third partnership deed is prepared with the consent of all the partners on the stamp paper. Partnership deed includes-

• Capital contribution made by all partners.

• Shares/Interest of all the partners.

• Other clauses made with mutual consent of all the partners.

• Details of the partners and firm such as their name, address, qualification, etc.

• Nature of the firm or business activities involved.

• Circumstances or process that would be followed in case of death or retirement of any designated partner.

• Profit/loss sharing ratio among all the partners.

• Details of loans provided by the partners.

• Rights, duties, salaries, commissions, or payable amount of the partners.

Step4: In Step fourth submit all the perquisite documents along with the partnership deed you have prepared.

Step5: In step fifth after the submission verification of documents and issuance of registration certificate.

Advantages and disadvantages of partnership firm registration

Advantages of partnership firm registration are as follows:

• Easy in decision making

• Easy management without any disputes

• Easiest business structure

• Raising funds

Disadvantages of the partnership firm registration are as follows:

• Abrupt dissolution

• Unlimited liabilities

• Maximum number of members

• Less trustworthy for the general public

Documents required for formation of a partnership firm