What is a Partnership Firm?

A partnership is a type of business where two or more people establish and run a business together. There are two main types of partnerships: Registered Partnership Firm & Un-registered Partnership Firm. Indian Partnership Act, 1932, governs the partnership firm. It is owned, controlled and managed by the partners of the firm. Individuals come together and invest capital and skills and organize a business, which is called partnership firm. A partnership deed suffices to create a partnership firm. The partnership firm is of two types i.e. registered partnership firm and un-registered partnership firm.

Formation of Partnership is the establishment of business between two or more persons who agree to combine their capital and liabilities. It requires opening separate bank accounts to record the investment of each partner.

Partnerships Formation is the simplest form. They are the easiest to form and the cheapest to maintain. They are simpler than corporations and even other types of partnerships.

Benefits of Partnership Firm in India

There are some benefits to registering as a partnership firm. 

1. Simple Registration Process

Only a Partnership Deed is enough to start a Partnership Firm in India. It takes up to 7 working days to get your Partnership Firm registered Registrar of Firm.

2. Legal Recognition 

For registered partnership firms there will be a legal recognition in the market & can claim for benefits & grants provided by governments under specific schemes. 

3. Raising Funds

It is easier to raise funds in a partnership firm from banks, investors & from other partners. Banks provide loans, if there is a partnership firm registration certificate. 

4. Go to Court

In case of disputes between partners and if the firm is a registered partnership firm, then the case can be filed against another partner by presenting a Partnership Agreement. 

5. Case against 3rd Party 

You can easily file a case (if necessary) against 3rd party if you are a registered partnership firm for viz. contract breach, payment failures for stocks or inventories you supplied etc. In the case of an unregistered firm, it is unable to file a case against a 3rd party legally.  

The above are some benefits of a Registered Partnership Firm. AcTax Experts help you in getting Partnership Firm Registration in a short period of time with all compliances taken care of.

Process of Partnership Formation & Registration

1. You have to make decisions on partners & choose wisely.
2. After thorough research, decide the type of partnership firm to establish. 
3. Decide Partnership Firm Name, capital contribution from each partner, place of business & other general terms. 
4. Draft a sound “Partnership Agreement” with clearly written terms & conditions. If you are unsure about draft, our experts will help you to draft the Deed. Speak to our expert now.  
5. Get Approval & Written Signature From All the Partners.
6. Then, you have to file Form I with The Registrar of Firms along with Deed & Other Documents. 
7. After verification & approval, you will receive Partnership Firm Registration certificate aka. Incorporation Certificate.

We at Actax, have tremendous years of experience in Formation of Partnership & Registration. We assist  firms with drafting of Partnership Deeds to Partnership Firm Registration in a short time. 

We help you to resolve all your doubts regarding What type of Partnership Firm to Choose? How should be the Partnership Deed? What is the process involved in Formation? What do you have to do for registration? & many more! 

All you have to do is, fill the form to your below right side & relax. Our experts will call you for further process.