A Partnership Firm is a business in which two or more people come together and establish a firm signing a formal agreement. Partners in the firm operate the business and share both profits and losses as per their partnership deed ratio. Check out this page to know the details such as What is meant by a Partnership Firm, Procedure for Registering a Partnership Firm, Documents needed for doing so, timeline, etc.<\/p>\n
A Firm established between two or more people with an aim to earn a profit is called Partnership Firm. It is not mandatory to register a partnership firm. However, the advantages you get with registration is more.<\/p>\n
Follow the simple guidelines provided below to register a partnership firm. They are as follows<\/p>\n
Step 1: Application for Registration<\/strong><\/p>\n File an Application to the Registrar of State in which the firm is located along with the required fees. Registration Application needs to be signed and verified by all partners. Fill up both business and personal details.<\/p>\n Step 2: Select the Name of the Partnership Firm<\/strong><\/p>\n You shouldn’t choose a name too similar to an existing firm doing the same business. The name shouldn’t include the words such as emperor, crown, empire, empress, etc. that show sanction or approval of the government.<\/p>\n Step 3: Certificate of Registration<\/strong><\/p>\n If the Registrar is satisfied with the application and documents submitted he will register in the firms and give you the registration certificate.<\/p>\n A Partnership Firm Registration might take 10 days around subjecting to the departmental approval and revert from the respective department.<\/p>\n You need to carry the below documents in order to get registered for Partnership Firm. They are along the lines<\/p>\n Below are the advantages of Partnership Firms. You can know the benefits of going for a Partnership Firm as a business type by referring to the below modules.<\/p>\n Easy to Incorporate<\/strong> – Partnership Firms are easy to incorporate when compared to other firms. You can start them by drafting the partnership deed and then enter into the partnership agreement. Registration is voluntary and is not mandatory in these kinds of firms.<\/p>\n Less Compliances<\/strong> – You should adhere to very few compliances when compared to an LLP or Company. In fact, partners don’t even need Digital Signature Certificate or Director Identification Number. Introduction of Changes in the business is quite simple. However, they have legal restrictions on their activities. The Registration Process is cost-effective and the dissolution of the firm is also simple and doesn’t involve many formalities.<\/p>\n Quick Decision – <\/strong>Decision Making is simple and quick as the management and ownership are the same. All the Partners take decisions collectively and then implement them. Partners have wide powers and can perform transactions too on behalf of the firm and even undertake certain decisions without the consent of other partners.<\/p>\n Profit and Loss Sharing – <\/strong>Profit and Loss are shared equally among the partners. Losses will be borne by them equally as per their partnership deed ratio thus reducing the burden on a single partner or person.<\/p>\n 1. How many people are required to start a Partnership Firm?<\/strong><\/p>\n A Minimum of 2 People is required and a maximum of 20 people is required to start a Partnership Firm.<\/p>\n 2. Is registration of a partnership firm compulsory?<\/strong><\/p>\n Registration of Partnership Firm is not mandatory under law.<\/p>\n 3. What are the benefits of registration of a partnership firm?<\/strong><\/p>\n Benefits of Partnership Firm Registration is as under<\/p>\n 4. Is notary compulsory for partnership deed?<\/strong><\/p>\n It is necessary to notarize a partnership deed and it could be better if you could register before the magistrate.<\/p>\n 5. What are the documents required to register a Partnership Firm?<\/strong><\/p>\n Documents required to register a Partnership Firm are as under<\/p>\n A Partnership Firm is a business in which two or more people come together and establish a firm signing a formal agreement. Partners in the firm operate the business and share both profits and losses as per their partnership deed ratio. Check out this page to know the details such as What is meant by …<\/p>\n<\/a>Time Taken for Partnership Firm Registration<\/h3>\n
<\/a>Checklist for Partnership Firm Registration<\/h3>\n
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<\/a>Documents Required for Partnership Firm Registration<\/h3>\n
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<\/a>Advantages of Partnership Firm<\/h3>\n
<\/a>Disadvantages of Partnership Firm<\/h3>\n
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<\/a>FAQs on Partnership Firm Registration<\/h3>\n
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