About the Service
Partnership firm is a business entity registered under the Partnership Act, 1932 where two or more people join together as partners for running & managing a business while sharing the profits and losses in an agreed ratio. It is not mandatory to register a partnership, but it is very risky and is not recommended by any professional experts.
Documents required
1. PAN and Adhaar cards of all the partners
2. Capital contribution
3. Profit sharing ratio
4. Any other clause which needs to be inserted
5. Address of firm along with proof
Timeline of service
The first draft of partnership deed shall be shared with the client within 7 working days from the receipt of the documents and information.
FAQs
1. What are the benefits of a Partnership Firm?
- Minimum Compliances: Managing a partnership firm is very easy as there are no mandatory compliances of auditing for small businesses unlike a limited liability partnership or private limited company.
- Cost Effective: Registering and maintaining a partnership firm does not require involvement of Digital Signature Certificate and Designated Partner Identification number which makes it more economical than other forms of businesses.
- Easy to Start and Exit: Partnership can be registered only with a partnership deed and PAN Card of the firm. Hence, it is easy to start and exit.
2. What are some major terms and conditions mentioned in the deed of a partnership?
-Details of the firm and partners
-Profit and Loss sharing ratio among the partners
-Nature, commencement and duration of partnership firm
-Salary and commission of partners
-Interest on capital and loan
-Provisions related to capital introduction and capital withdrawal
-Accounting and Auditing
-Banking and Voting rights
-Conditions for admission, resignation and retirement of partners