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
- Registered Partnership firm
- 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