Partnership - FINANCE DOMAIN

Partnership Registration

Partnership is one of the traditional forms of business entity where more than one person join hands for a business venture.

A partnership business can be started with two or more partners. Two or more people agree to share the profits or losses of a business as per the agreed sharing ratio.

Partners are Co-owners of business.

Partnership harnesses the Synergy Effect i.e., the collective wisdom of two or more people is greater than the sum of their individual wisdom.

Easy to Form, register and Dissolve
No requirement of any minimum amount of Capital contribution
Very few legal formalities and compliances unlike Companies or LLP’s
Well considered decision making
Flexibility in the business structure due to less legal restrictions.
Suitable for starting a Micro or a Small unit.

Entity Type	Partnership Firm
Governing Act	Partnership Act, 1932
Authority giving Registration	The Registrar of Firms/ Other Registering authority of respective State Governments
Liability	The individual status of each partner is not distinct from the firm. Hence, partners bear personal liability for all the acts of the firms. Thus the Partner’s liability is unlimited .
A number of partners and requirements	A partnership firm must have a minimum of 2 partners and can have a maximum 20 partners. Name of the firm should be permitted by the registrar.
Compliance Requirement	No need to submit any specific reports/ annual return/other compliance with the registering authority.