Create Partnership Firm
Two or more individuals known as partners comes together for a common business purpose to create Partnership Firm
➦ Easy to Start
➦ Minimum Compliance
➦ Mutual Agency
➦ Minimum Two Individuals
➦ Not a Separate Legal Entity
➦ Joint Ownership
Create Partnership Firm In India
A Partnership Firm can be registered in India at an offer price of ₹2,690/- Only
A General Partnership firm is governed by the Partnership Act, 1932. It is a business structure in which at least two people oversee and work a business as per the terms defined in a Partnership Deed, which could be either registered or not. In such a business, the members are known as partners who share the profits and liabilities of the partnership firm in a predetermined ratio. This structure is thought to have lost its relevance to some extent since the introduction of the Limited Liability Partnership (LLP) because its partners have unlimited liability, which means they are personally liable for the debts of the business. However, low cost, ease of setting up and minimal compliance requirements make it an attractive option for businesses.
Note Down The Documents Required To Create Partnership Firm
- PAN Card of the Partners
- Aadhaar Card/Voter’s ID/Driving License/Passport
- Passport Size Photographs of partners
- Notarised Rental Agreement in case of rented property or Sale/Property Deed in case of own property
- No-objection certificate from Land Owner in case of rented property
Features of Partnership Firm
Partnership Firm has lesser compliance requirements as compare to Company.
Partnership Firm does not have perpetual existence.
Easy to Start
It is easy to start a Partnership Firm.
Liability of Members
Liability of partners is unlimited.
Separate Legal Entity
A Partnership Firm does not have separate legal entity.
FAQs to Create Partnership Firm
Low costs, ease of setting up and minimal compliance requirements makes it an attractive option.
The partners in a partnership firm are the owners, and thus, are not separate from the firm. Any legal issues or debt incurred by the firm is the responsibility of its owners, the partners.
No, registration of a partnership is not necessary. However, for a partner to sue another partner or the firm itself, the partnership should be registered. Moreover, for the partnership to bring any suit to court, the firm should be registered. For this reason, it is recommended that larger businesses register the partnership deed.
The deed should contain names of the partners and their addresses, the partnership name, the date of commencement of operations of the firm, amount of capital invested by partners, profit-sharing ratio, rules and regulations to be followed for addition or removal of partners.
Yes, partnership firm has to maintain books of accounts for the business.
TaxRodo provides the virtual services, which means there is no compulsion for you to be present at our office physically. A scanned copy of documents can be uploaded or sent via mail, and we will handle the rest.