A Partnership firm is a business entity created by persons who have agreed to share profits or losses of the business. Partnership registration is a very good choice of business entity for small enterprises wherein two or more persons decide to contribute to a business and share the profits or losses.
In India, Partnership registration is widely prevalent because of their ease of formation and minimal regulatory compliance. Hence, partnership firms are the most common form of business entity wherein a group of people is involved.
A partnership can be registered or unregistered. It is, however, beneficial to get partnership registered because an unregistered partnership has certain rights denied like cannot file a suit against any partner, third parties or enforce any provisions of partnership deed legally.
A partnership firm can even be registered after formation. A partnership deed should be executed between partners which can be oral or written. It is advisable to write a partnership deed to avoid conflicts.
Details Required for partnership registration:
1. Name and address of the firm and all the partners
2. Nature of business
3. Date of starting of business Capital to be contributed by each partner
4. Capital to be contributed by each partner
5. Profit/loss sharing ratio among the partners
Documents Required are:
1. Application for registration of partnership (Form 1)
2. Specimen of Affidavit
3. Certified original copy of Partnership Deed
4. Proof of principal place of business (ownership documents or rental/lease agreement)
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