Partnership Firm
If you decide to have partners in your business, the easiest way to go ahead with is to create a partnership firm. All you need is registering a partnership deed which is an agreement between the partners. This agreement will contain all the duties and obligations between the partners and how profit will be shared.
As per “The Partnership Act, 1932”, “Partnership” is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.
Features
- There should be Atleast 2 minimum and 10 maximum partners in the firm (max.20 partners in case of non-banking business).
- Every partner is liable jointly with all other partners for all acts of the firm done while he is a partner.
- Each partner is entitled to represent the firm. So, a partner is an agent of the firm as well as of other partners.
- A minor cannot become a partner but with the consent of all partners, he shall be admitted only for the benefits of partnership.
- A partner can transfer his interest in the firm, but doesn’t entitle the transferee to interfere in the conduct of business, his scope will be limited to only taking part of his profit.
- Unlimited Liability of Partners.
Benefits
- It is easy to form.
- As compared to sole proprietorship, partnership firm has large resources for business.
- Sharing of risk by all partners individually.
- Firm can be easily dissolve with mutual agreement of partners without any complex legal proceedings.
Checklist of documents
Copy of PAN card, Passport/ Voter-ID/Driving license of Partner(s).
Bank Statement of partner(s)/ Electricity bill.
Passport size photo of Partner(s).N
OC from owner of registered office and rent agreement or sale deed (if any).
Signature specimen of Partner(s).