What is a Partnership?
Partnership is a firm that comprised of two or more members who have decided to carry same business on an agreed manner. Here, partners supposed to share profit and loss and collectively responsible for any of the liability. The rules and regulations for partnership firm registration is controlled and maintained under Indian Partnership Act 1932. This form of corporate is one of the common and highly demanded in the Indian business market. With two or person you can start your business while getting registered as a partnership firm. This form of company brings you with the simplest and easiest ways of carrying business without any risk of infringement.
Partnership firm is an old form of business constitution wherein, two or more persons get associated to do business activity for profits. In this constitution, profits and losses are shared on an agreed ratio as defined in the partnership agreement. Partners are personally liable in this old form of business constitution, but in the new era, Limited Liability Partnership firms are preferred wherein, the liability of a partner is limited to the amount of commitment to the business.
The registering a partnership firm in India is being carried under the section 58 of the Indian Partnership Act by filing an application with Registrar office of company registration in the same state where the company's head office is situated. There are several points that one needs to follow if one wants to apply for the certificate of partnership firm registration.
There are two types of Partnership firms:
Process for Partnership Registration
- Need to file an application for company registration under a partnership form of corporate with required information like the name of your firm, place of business, partnership date, duration of firm and full name and address of partners where the same application needs to verify and sign by every partner.
- Minimum partners should be at least two and maximum 10 and be sure the company name should not conflict with any other government company/department, society or trust name, religion symbol or organization.
- Application must be submitted under a prescribed Form 1.
- Other documents like partnership deeds, proof of place of business and Specimen of Affidavit.
- After a registrar confirms all the documentations confirmedÍ¾ you can finally apply for the certification of partnership firm and also for commencement of business in India.