Any business operated and owned by two or more persons is referred to as a Partnership Business. Such a partnership is established through a mutual agreement known as a Partnership Deed, as per The Partnership Act, 1932. A partnership is essentially a collectively accepted entity where individuals come together to work collaboratively and share the earnings from a business. Each partner in the partnership has the ability to contribute to the business operations, and any one of them can make decisions on behalf of the entire firm. The individuals who own the partnership firm are called partners. Partners collectively determine the method of profit distribution and the ratio of sharing. A Partnership Firm can have a minimum of two partners and a maximum of twenty partners (with a maximum limit of ten for banking firms). The liability of a Partnership Firm is unlimited, making the partners personally liable for covering losses if the partnership exhausts its assets. The relationship between the firm and its partners is of a principal and agent in nature.

Key Points:

Agreement (Partnership Deed): A written or oral agreement that outlines terms, roles, profit-sharing ratios, and capital contributions.

Minimum/Maximum Members: Requires at least two partners; generally limited to 20.

Unlimited Liability: Partners are personally liable for the debts of the firm; their personal assets can be attached if the business assets are insufficient.

Mutual Agency: Every partner can act on behalf of the firm and bind other partners through their actions.

No Separate Legal Entity: The firm is not recognized as legally distinct from its partners.

Profit Sharing: Profits and losses are shared among partners based on the agreed ratio.

Registration: While not mandatory, registering a partnership firm is recommended to obtain legal rights and sue third parties.

Management: All partners have the right to participate in the management of the business.

Transfer of Interest: A partner cannot transfer their share to an outsider without the consent of all other partners

Documents Required for partnership firm registration

• PAN Card of All Partner
• Aadhar Card of All Partner
• Photo of Partners
• Mobile Number & Email
• Name of Partnership Firm, Scope of Activity and Location of Business
• Office Address – Latest Utility Bill (Electricity Bill/Telephone Bill, NoC) of Proposed firm

Package: 10,000/-

Package includes:

 

• Partnership Deed Drafting
• PAN Card Application
• Stamp of Firm
• MSME Registration
• Firm & Society Registration