Partnership is a form of business registration in which two or more than two individuals are agreed to own and to run a business. It is arrangement of business registration where both parties are known as partners and they are agreed to establish a business. Partnership is fully dependent in the mutual understanding of the all parties. In Partnership, any individuals, business entities, government, etc. may became a partner. In every partnership business form, all partners share ownerships and responsibilities for running their business. All partners shares the income and losses of the business. Profits of partnership are calculated on the Partnership pan number. Partners who receive the income from partnership business can claim it on their personal income tax return. Partnership business is run as per terms and conditions which are written in partnership Deed. In partnership business registration, Partnership Deed is most important document. It is like memorandum of the business. In partnership business partners are personally liable for the debts of the business and all partners are agent of the partnership firm. Partners are also liable for the misrepresentation of the other business partners. Registered or unregistered both types of partnership registration are made as per Indian Partnership Act of India. But legally registered partnership is takes more advantage than unregistered partnership. Partnership registration is good for start-up business and small business.
WHY TO GET REGISTERED:
- Easy to start.
- Less costly.
- Minimum compliances.
- After registration partnership can sue on third party.
- Easy to close.
- Document Preparation.
- Partnership Deed drafting on non judicial stamp paper.
- Signing of partnership deed by each partner and at least two witnesses.
- Registered deed if partners want to register it under partnership act.
- Pan card apply.
- Copy of Pan Card of all partners.
- Copy of Aadhar card of all partners.
- Proof of registered office address.
- Form no.1 (application for registration under partnership act)
- Affidavit by all partners to became a partner of partnership firm.
- Original copy of Partnership deed.
Advantage of Partnership registration:
- Only registered firm can file a suit against third person in the court.
- Less compliance.
- More funds available for business.
- Higher credibility
- Easy to close.
- Easy to maintained.