Partnership Firm Registration

Overview of Partnership Firm Registration

• Partnership registration is a two or more persons decide to set up the business and form a relationship to share the profits of the business which is governed and regulated by agreement formed between them.
• It is one of the most popular business structures in India with the legal agreement between the partners.
• Partnership firms are governed by the Indian Partnership Act, 1932. Rights and duties of partners are governed by this Act.
• The partnership agreement is also called as partnership deed, which contains 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 and profit-sharing matrix, rules and regulations to be followed for intake of partners or removal.
• A partnership firm must have minimum two partners, we can include up to 10 partners in the banking business, while those engaged in any other business can include up to 50 partners.

Partnership Firm registration can be done in 3 ways in India

Documents needed for Partnership Firm registration

Partnership Firm Registration Process

Benefits of Partnership Firm registration

• As comparison to other business form, cost of registering partnership firm is very low.
• Forming a partnership firm is easy and less complicated as compared to companies.
• Any name can be chosen for a Partnership firm as long as it does not infringe on any registered trademark.
• If any dispute arises among the partners, the dispute is based upon the rights arising from agreement (i.e. partnership deed).
• A Partnership firm is not required to file its annual accounts for each year unlike a LLP or companies (OPC, pvt ltd).

Different types of Company Business Structures