Home / Partnership firms
What is Partnership firms ?

Persons who have entered into a partnership with one another to carry on a business are individually called “Partners“; collectively called as a “Partnership Firm”; and the name under which their business is carried on is called the “Firm Name”. A Partnership is one of the most important forms of a business organization, where a formal agreement between two or more people is made who agree to be the co-owners, distribute responsibilities for running an organization and share the income or losses that the business generates. Hence, unlike a company that has a separate legal entity distinct from its members, a firm cannot possess property or employ servants, neither it can be a debtor or a creditor. It cannot sue or be sued by others. Registration is optional for General Partnerships but it is advisable to do so. Partnership firm registration offers various benefits that do not apply to the non-registered ones.

Procedure to Partnership Firm
  • Select your Package
  • Make Online Payment
  • Preparation of Partnership Deed
  • Verification of Documents and Issuance of Registration Certificate.
Documents required for Partnership Firm
  • Notarized Partnership Agreement
  • Proof of Registered Address (not older than 2 months)
  • NOC from the Owner of Premises
  • Two Photographs of Partners
  • Copy of PAN Card of all Partners
  • Valid Identity Proof of all Partners
  • Latest Address Proof
  • Nature of business
  • Application for registration of partnership (Form 1)
Benefits of Partnership Firm
  • It is easy to form a partnership firm and very economic, The Registration of partnerships firm is optional and do not require any formality to be done, one can start the business as per mutual understanding
  • The partnership firm has an advantage of flexibility as they can make decisions and can modify according to the dynamic environment easily.
  • Partnership Firm also provides a benefit of sharing of risk as the loss is shared individually by all the partners. In a partnership firm, all the profits and losses are shared by the partners in any ratio as agreed. If it is not given then they share it equally. Risk does not fall on one individual’s shoulder in this type; it is shared by all the partners.
  • Partnership combines the financial strength of all partners, as the liability of partners is joint and several. Multiple partners are capable of making more feasible contribution.
  • Each partner will bring their own knowledge, skills, experience and contacts to the business, potentially so it will get a better chance of success than any of the partners trading individually.
  • The statement of accounts of the firm need not be published and this ensures secrecy.
  • Partnership Firm is not subject to excessive legal restrictions; therefore it enjoys freedom in administration.
  • In a partnership firm as every partner has a right to express his opinion, everybody’s interests are protected.
  • Partnership Firm be easily dissolved. Any partner can give 14 days’ notice to other partners and dissolve the firm with the consent of other partners.
    ...No Content