What is Partnership?

A partnership firm is a way of doing business , it’s a business agreement created by the two or more persons or business entities . two or more persons generally creates the partnership for doing business, partners will share the profit and losses of partnership firm as decided by them . Partnership firm is a unlimited liability form of business, it,s not considered as separate legal entity .

There are two type of Partnership Firm

  1. Registered Partnership firm
  2. Unregistered Partnership firm

Features of partnership firm

  • Partnership Agreement :- two or more persons may form a partnership firm by way of Partnership Agreement , in which partners may decide the turms and conditions for the operating the partnership business .
  • Partners :- there must be Two partners in partnrership firm , in any partnership firm there should not be more the 20 members in a partnership firm other then banking business.
  • Partnership firm should do lawfull business , abide by the low
  • The liability of partners will be unlimited jointly and several
  • Partnership firm should fix their partnership profit by way of agreement .
  • Partnership may be registered or unregistered 

Advantage of partnership firm

  • Easy to form
  • The name of Partnership firm is not registrable , thare is no need to apply availability of name of partnership firm , but before desiding the name for the firm partners should check the availability of name as per trademark act
  • Less compliances of law like Company or limited liability partnership .
  • Easy winding up
  • Easy decision making

Document Needed for the forming the partnership firm

  • PAN card adhar card of all the partners
  • Passport size photo of partners
  • Agreement of partnership should be notarized and print on stamp ( amount of stamp would be depend on state to state)
  • There are procedure of registration partnership firm depends upon jurisdiction of states, every state have different procedure of registration of partnership firm .

Time limit for registering a private limited company

It may take 10-15 days for registering a private limited company . this time line further subject to the government processing and approval time