Partnership Registration

What is a Partnership Firm?

About Partnership Firm

Partnership Firm is a conventional form of structure to do business jointly. when two or more than two people come together to do business with joint ownership & management then it is termed as a partnership. Registration of partnership business is highly recommended. It is suitable for small manufacturers, traders, service providers & professionals. The Liabilities of partners is unlimited. Proworktree gets your Partnership firm registered in Effective, Efficient and Economical way. This form of organization should have at least two people to initialize the process of establishing a firm. Proworktree provides all the Partnership related services across India.

Advantage of having Partnership Firm

Less Compliance : A partnership firm is only required to follow compliance as per their tax & government registrations. So no separate annual filing in any other form is required.

Easy to Get Started : PAN Card, Identity and Address Proof of partners along with partnership deed are the documents required.

Inexpensive business start-up : It is an inexpensive type of business. It requires a minimal amount to get started along with less compliance. etc.

Tax Benefits : Partnership firm enjoys tax benefits when compared to other forms of businesses.

More details on Partnership Firm

Need to Form Partnership Firm

It is best for those who are planning to start a small business. The cost incurred to set up this Firm is also minimal such that it can be started by any person interested to do small business. Even there is no compulsion of having the registration done for the Partnership Firm. 

Number of Partners Required

To start a business under Partnership firm it should have at least 2 members. However, a Firm engaged in banking business can have at least 10 members and 20 members in case of any other business. The share of profit and loss can be divided either in equal ratio or unequal ratio as decided at the time of starting the business.

Agreement Between the Partners

In partnership Firm the is an agreement called Partnership Deed in which there are certain essential things are mentioned like the rights, the share of a particular partner in profit/loss, their duties, delegations, obligations are mentioned.

 Partnership Deed can be written or oral, but it is always said to have a written partnership deed so as to avoid conflicts that may arise between the partners in the future.

Necessary or Not to Register The Firm

As per the Indian Partnership Act 1932, Registration of the Partnership Firm is not necessary. However, there are certain rights or benefits available for the registered firms which are not available for the unregistered firms. Moreover, a partner to sue another partner of any firm, registration is required i.e. to sue others and get the suit to the court registration should be done.

 A legal business structure in which two or more persons, run and manage a business according to their terms and goals. Compare to other business structure, partnership registration is quite easy and most widely used for small and medium-sized business. Proworktree provides all the partnership registration related services.

It is essential that all partners must agree on a common firm name and then agree for a partnership agreement. In the document, all terms and conditions should be mentioned, it valid on oral promises. The terms of partnership agreement may vary on the requirement of partners mutual needs. This flexibility is mentioned in the partnership act, 1932. In case of a partnership agreement, silent on any situation, in this provision of the act would apply.

Why partnership Firm ?

- Registration of partnership is very easy.

- Expenses of partnership registration is very less compare to LLP.

- Required minimum compliance.