Organize partnership business/firm

 Starting up a partnership business/firm 


Partnership firm is a strong formation of business and easy to form. So if we decide to form our business as partnership firm there are several questions comes to our mind such as what actually is the partnership?  What are the advantage and disadvantage of partnership frame?  How to format /register a partnership farm?  Etc. Here we are going to discuss all about partnership firm.

So first of all what is partnership business?

In common sense, partnership business is a form of business where two or more people share ownership

According to the Indian Partnership Act 1932, “partnership is the relation between persons who have agreed to share the profit of carried on by all or any of them acting for all.” 

partnership business
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Advantage and disadvantage of partnership firm.

Advantage:

Partnership business is easy to form.
More fund available for business as compare to sole-proprietorship.
The risk is distributed among partners.

Disadvantage:

The liability of the partner is unlimited.
Risk of disagreement among partner.

The process to form a partnership firm. 


 Partnership firm is formed by preparing and signing a partnership deed by all the partners. Partnership deed is a kind of contract or agreement among the partner it should be on stamp paper written as Indian stamp act.
The essential aspects in a partnership deed are:
Name and address of partner and partnership firm.
Nature of business.
Duration of partnership
The contribution of partner capital
Sharing ratio of profit or loss.
Responsibility and duties of partners.

(Other aspects may be included if necessary)

Registration:

It is optional to register a partnership firm as Indian Partnership Act 1932. But it is good to register a partnership firm.

 The partnership firm is registered under Indian Partnership Act 1932. You may register through the registrar of your state known as "registrar of firms & societies". Now a day registration process can be done online by registration portal or website provided by the state.


Process of registration:

(Registration process may be different according to state we mention the basic procedure)                                 

  • Application through the online portal
  • Upload document as mention                                                 
  • Pay Application Fee 



                     
                       Acknowledgment is generated with Unique Identity Number     

After verifying all the document if Registrar is satisfied he/she may provide Registration certificate for your partnership firm.


Basic demanded document to register partnership firm: 

(Document may be different according to state we mention the basic Documentations.)
Filled in form (I and witnessed by a judicial magistrate or chartered accountant.)

Partnership Deed
Land document
Trade License (Obtain from municipal or Panchayat.) 

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