A business organization in which two or more individuals manage and operate the business. The owners of a partnership business are individually known as the “partners” and collectively as a “firm”.<\/p>\n

A partnership is formed by an agreement: which may be either written or oral. When the written agreement is duly stamped and registered, it is known as “Partnership Deed”<\/p>\n

Type of Partnership<\/strong><\/h2>\n

\n
• Un-Registered Partnership<\/li>\n
• Registered Partnership<\/li>\n
• Limited Liability Partnership (LLP)<\/li>\n<\/ul>\n

  Registration Applicability<\/strong><\/h2>\n

  \n
  • Un-Registered Partnership<\/li>\n
  • Registered Partnership<\/li>\n
  • Limited Liability Partnership (LLP)<\/li>\n
  • Not compulsory to be registered<\/li>\n
  • Registration with Registrar of Firm<\/li>\n
  • Registration – Ministry of Corporate Affairs<\/li>\n<\/ul>\n

    Legal Provision Regulated & Controlled by<\/strong><\/h2>\n

    \n
    • For Registered & Un-registered – Indian Partnership Act, 1932<\/li>\n
    • For Limited Liability Partnership (LLP) – Ministry of Corporate Affairs<\/li>\n<\/ul>\n

      General Content of Partnership Deed<\/strong><\/h2>\n

      \n
      • Name of the firm.<\/li>\n
      • Nature of the business to be carried out.<\/li>\n
      • Names of the partners & their Profit Sharing Ratio<\/li>\n
      • The town and the place where business will be carried on.<\/li>\n
      • The amount of capital to be contributed by each partner.<\/li>\n
      • Loans and advances by partners and the interest payable on them.<\/li>\n
      • A number of drawings by each partner and the rate of interest allowed thereon.<\/li>\n
      • Duties and powers of each partner.<\/li>\n
      • Any other terms and conditions to run the business.<\/li>\n<\/ul>\n\n\n\n

        \n Advantage of Partnership<\/strong><\/h3>\n \n Your business is easy to establish and start-up costs are low.<\/li>\n More capital is available for the business & greater borrowing capacity.<\/li>\n Less statutory compliances as compared to Private limited Companies.<\/li>\n Better decision making and control over the business.<\/li>\n<\/ul>\n<\/td>\n

        \n Dis-Advantage of Partnership<\/strong><\/h3>\n \n Limitations to keep the firm in converting in a large business scale.<\/li>\n Unlimited liability. General partners are liable without limit for all debts contracted and errors made by the partnership.<\/li>\n Since decisions are collective, disagreements can occur.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Registration Process<\/strong><\/h2>\n\n\n\n \n Un-Registered Partnership<\/strong><\/h3>\n \n Draft Partnership Deed<\/li>\n Noterized the Deed<\/li>\n Obtain PAN<\/li>\n Obtain TAN<\/li>\n Open Bank Account<\/li>\n Start the Business<\/li>\n<\/ul>\n<\/td>\n \n Registered Partnership<\/strong><\/h3>\n \n Draft Partnership Deed<\/li>\n Appear both partners & submit required documents with Registrar of Firm<\/li>\n Obtain Registration Certificate<\/li>\n Obtain PAN & TAN<\/li>\n Open Bank Account & Start the Business<\/li>\n<\/ul>\n<\/td>\n \n Limited Liability Partnership (LLP)<\/strong><\/h3>\n \n Obtain DIN No. & DSC of all partners<\/li>\n Name Approval filed in Form-1 & Form-2 sent for MCA after approval<\/li>\n LLP Agreement (Partnership Deed) is drafted and filed along\u00a0 with Form-3 within 30 Days.<\/li>\n Get the Incorporation Certificate.<\/li>\n Obtain PAN & TAN<\/li>\n Open Bank Account & Start<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":" A business organization in which two or more individuals manage and operate the business. The owners of a partnership business are individually known as the “partners” and collectively as a “firm”. A partnership is formed by an agreement: which may Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"ngg_post_thumbnail":0,"footnotes":""},"class_list":["post-66","page","type-page","status-publish","hentry"],"yoast_head":"\n