Partnership firm has two types i.e. Registered Partnership firm and Non-Registered Partnership firm. Partnership can be between two Individual, Company or Organization. In Partnership firm, there is an Agreement between the partners in which all terms and conditions are mentioned including their profit-sharing ratio with their mutual consent
Partnership Firms in India are governed by the Indian Partnership Act, 1932. This is very simple and easy way to start the Business. A partnership firm is a business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Deed. A Partnership Firm is a popular form of business constitution for businesses that are owned, managed and controlled by an Association of People for profit. Partnership firms are relatively easy to start are is prevalent amongst small and medium sized businesses in the unorganized sectors
1.DRAFTING OF PARTNERSHIP DEED
First step in Partnership Registration is drafting of partnership Deed. The deed will be drafted after discussion with all partners as per their requirements.
2.REGISTRATION OF PARTNERSHIP DEED
Registration of partnership deed is optional, but in some state it is compulsory to register a partnership firm. It is advisable to Register the firm as it has many more benefits.
3.APPLICATION AND OBTAIN PAN & TAN
For Partnership firm PAN and TAN in the name of partnership firm is also required.
Partners must be a Citizen and Resident of India.
There is no limit of minimum capital for starting a partnership firm.
The partners in a partnership firm are the owners, and thus, are not separate entity from the firm. Any legal issues or debt incurred by the firm is the responsibility of its owners, the partners
A partnership must have at least two partners. A partnership firm in the banking business can have up to 10 partners, while those engaged in any other business can have 20 partners.
There is no time period limitation for a partnership firm. It depends upon their mutual consent.
Yes, it is mandatory to draft a partnership deed, because all the terms and condition are mentioned in the deed.
No, registration of a partnership is not necessary. Moreover, for the partnership to bring any suit to court, the firm should be registered.
The deed should contain names of the partners and their addresses, the partnership name, the date of commencement of operation of the firm, any capital invested by each partner, the type of partnership and profit-sharing , rules and regulations to be followed for intake of partners or removal.
