A Partnership Firm is a popular form of business constitution for businesses that are owned, managed and controlled by an Association of People for profit. Partnership firms are relatively easy to start are is prevalent amongst small and medium sized businesses in the unorganized sectors. With the introduction of Limited Liability Partnerships in India, Partnership Firms are fast losing their prevalence due to the added advantages offered by a Limited Liability Partnership.
There are two types of Partnership firms, registered and un-registered Partnership firm. It is not compulsory to register a Partnership firm; however, it is advisable to register a Partnership firm due to the added advantages. Partnership firms are created by drafting a Partnership deed amongst the Partners and Anshul K Jain & CO help start a registered or un-registered Partnership firm in India.
Partnership Deed on Stamp Paper with Notarised - This deed, notarized on a Non-Judicial Stamp paper with minimum value of Rs. 200 or more and signed by all partners, is 'THE' charter or blueprint of the firm.
PAN & TAN of the Partnership
Registration under other act like MSME Act 2006.
Assures flexibility of Operations and Administration
Partners can come together for pre-defined period and completing specific Object or Project
Unregistered Firm can be registered at any time after formation.
Tasks and Responsibilities are shared among Partners as per Agreement
Various types of Returns to the partners (deductible under Income Tax up to limit prescribed)
Easy admission and resignation of Partners
Easy Transfer of Ownership with or without diluting share of Profit
Easy dissolution or conversion into corporate form such as Pvt Co & LLP
Least Compliance Requirements compared to other entity