Partnership Firm Registration in India

Partnership Company in India register under Indian Partnership Act, 1932 as per section 4 of the Act.to start a partnership firm, partners need to enter into an agreement which is known as partnership agreement / deed. Partnership firm is a relationship between two or more person who have agreed to share business profit and loss.
Partnership firm in India is a contract between its partners for working together and sharing its profit and loss. Partnership is a type of contract is does not arise from status, operation of act or inheritance. In a partnership deed serves an evidence of terms and conditions between its partners which reduces chances of dispute amongst partners.for partnership firm in India all law and aspects of partnership covered under the Indian Partnership Act 1932. This act define that partnership as “the relationship between two or more parties who have to agreed to start business in partnership for achieve some common objective and share the all profit and loss of the business.

Important Point of a Partnership-

1.Formation of Partnership- A partnership is not separate legal entity. But as per Partnership Act firm must be formed through a legal agreement between partners. Its business of the firm must be legal and lawful and object should be profit If person work together for charity and social work will not be a partnership.

2.Liability of partners- In the partnership unlimited liability of its partners .it mean partners are personally liable for the firm for the payment of the dues and personal assets can be liquidated to fulfill dues of the firm. If dues is recovered form one partner then he can claim to the other partners for their share of dues as per partnership agreement between them.

3.Number of partners- As per Indian partnership Act 1932 at least two people are required for a partnership. The Act does not define about maximum number of partners in partnership firm but companies act define maximum number of partners for banking business its 10 and for other business its 20.

4.Continuity of firm-In partnership firm the death, retirement, bankruptcy, insolvency or insanity of a partner firm will be dissolve. if the remaining partners want to continue the firm then need to draw a new contract.

5.Mutual agreement-In partnership firm all partners run business by mutual agreement. it mean every partner act as a agent in partnership firm .

Type of Partners-

All partners in firm are not have same responsibilities and function. there can be various types of partners in a firm.

1.Active Partner:– Active partner are those partner who take active participation in the business of the firm. He participates in the day to day activity .

2.Dormant Partner:– dormant partner as a sleeping partner. Dormant partner will not participate in day to day activity of firm. But he will share profit in the firm .

3.Nominal Partner:– this type of partner in a firm only for Name. he allow the firm to use his name for goodwill. And he is not in sharing in profit and not in contribution of capital.

Benefit in Partnership firm In india-

1.Formation of partnership firm is easy as compare to other business form.

2.Cost of partnership is low as compare to other business form.

3.Compliance are minimal in comparison with other forms of business.

4.In partnership firm more tax benefit as compare to proprietorship.

Documents required for partnership Registration-

1.Pan card of partners (Mandatory).

2.Two password size photo of partners.

3.Address proof of partners like-Aadhar card, passport, Driving license.

4.Utility bill for company Register office.