Partnership Firms Registrations

partnership firm registration in india cheapest

Partnership Firms Registrations

A Partnership Firms 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 and 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 Taxtoday can help start a registered or un-registered Partnership firm in India.

Partnership Deed In Partnership Firms

A partnership deed is a kind of document that includes the responsibilities and rights of all the parties involved in a business operation. This document regulates the conduct of the business. It is also helpful in preventing disagreements and disputes over the role of individual partners in the company and the benefits which are due to them. The following details are to be mentioned in a partnership deed:

  • Details of all the partners in a firm.
  • Duration of Partnership.
  • Nature of the business conducted by the firm.
  • The capital contribution made by each partner.
  • Profit and loss percentage shared among the partners.
  • Date of commencement of the firm.

Besides this, the following additional clauses must be mentioned in the deed:

  • Salaries and commissions to be settled among the partners.
  • Interest on the partner’s capital.
  • Allocations of roles of the partners.

Note:- When a partner is added, removed or deceased, a partnership deed has to be formed in a stamp paper in accordance with the Indian Stamp Act. It is mandatory for every partner to possess a copy of the partnership deed.

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