Everything you shall know about Partnership Firm Registration

If you and a known person of yours are having similar ideas and would like to endeavour by implementing those ideas on small scale into a business, a partnership firm is the exact type of structure that may help you. Partnership Firm is that sort of a business type where more than a single person come together to set up a business. It also means to ensure that every task and job in the firm complies with the rules and objectives present in the Deed.

Fact About Partnership Firm

Partnership Firm is easy to set up as there is no need for registration. Signing on the partnership agreement alone is more than enough. All kinds of debts and legal issues are required to be resolved by the partners of the firm. It is very easy to add or remove partners from the firm. After the emergence of the Limited Liability Partnership (LLP), the partnership firm has lost its hold for businesses operating on a large scale. There is a reason for this. In a partnership firm, there is an unlimited liability while in an LLP, partners are relieved from becoming personally liable for the business debts. A partnership firm is of two types: Registered and Unregistered. In the partnership firm, apart from the partnership firm deed, other Registration such as Gst, TDS registration and likewise similar other services will have to get registered. However, there are downsides too for this type of business structure. One of the most important drawbacks is that raising funds from investors is not an easy job here. Only a maximum of 20 members is allowed to be partners. Most of the time, there can always be a major disagreement between the partners that could lead to an easy collapse of the firm.

Why go for a Partnership Firm?

  • As minimum as two members are sufficient to put up the firm.
  • Low cost of setting up.
  • Lesser compliance requirements when compared with other types.
  • Registration for general partnership firm is completely optional.
  • Shared responsibilities and duties.

Documents required for Partnership Firm Registration

  • Name & Nature of Firm
  • Pan Card, Adhar Card & Photo of Partners
  • Minimum 2 partners Required
  • Electricity Bill & Rent agreement of Firm