KNOW ALL ABOUT PARTNERSHIP, STARTING FROM 1,999/- INR

Here is all you need to know about the service you are looking for

A Partnership is a business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in the Partnership Deed. It is owned, managed and controlled by an Association of People for profit. Partnership firms are relatively easy to start are is prevalent amongst small and medium sized businesses in the unorganized sectors.

Partnership firms are created by drafting a Partnership deed amongst the Partners and ebizfiling can help start a registered Partnership firm in India.

We at ebizfiling will make it easy for you to Register a Partnership firm with end to end support from our professional team.

Compare Your Need

Particulars Proprietorship Partnership Limited Liability Partnership One Person Company Private Company Public Company
Legal Entity No No Yes Yes Yes Yes
Limited Liability No No Yes Yes Yes Yes
Transferability No No Yes No Yes Yes
Tax benefits Low High High Moderate Moderate Moderate
Investor Preference No Low High No Moderate High
Statutory Audit Not Mandatory Not Mandatory Contribution >25 lacs or Turnover >40 lacs Mandatory, irrespective of share capital and turnover Mandatory, irrespective of share capital and turnover Mandatory, irrespective of share capital and turnover
Registration No No, but recommended Yes Yes Yes Yes
No. directors/partners One Min.2 Max.20(in case of Banking 10) Min.2 Designated Partners, Max. One Min. 2- Max. 15 Min. 2- Max. 15
Members No No No One Min. 2- Max. 200 Min. 7- Max. No limit
Annual Fillings No No Yes Yes Yes Yes
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Few points to make your decision easy

More Persons

  • 2-20 partners for non-banking business
  • 2-10 partners for banking business

Easy To Form

  • Registration not compulsory
  • Not much legal formalities

Large Resources

  • Resource pool creation by more than 1 person
  • Availability of larger resources as compared to proprietorship

Flexibility In Operations

  • Scalability in operations
  • Change in particulars only by executing a supplementary deed

Sharing Risks

  • Sharing of risks by more than 1 person
  • Diversified financial risk

Better Tax Planning

  • Remuneration to partners
  • Tax payable on profits after deducting above

A small procedure for your quick understanding

Get answers to all your questions here

Should a partnership firm be registered?

Not necessarily. However, unless a partnership firm is registered with the registrar of firms and societies, the rights of the partners inter se or against strangers cannot be enforced in a court of law. If the partnership deed itself creates, transfers or affects an interest in immovable property.

Is a partnership deed necessary to form a partnership firm?

No, it is not necessary. However it is often prudent to make a partnership deed to produce to the bank, income tax authorities and to clients with whom the partnership firm deals with.

Can a partnership firm be constituted for a particular business undertaking?

Yes. A person may become a partner with another for a single adventure or undertaking.

Is there a limit on the number of partners in a partnership firm?

Yes. If the number of partners is more than 20, it has to be registered as a company.

Can a partnership firm be sued in the name of the firm?

A person may sue a partnership firm but the plaint has to disclose the name of all the partners who constitute the firm. However under the Income Tax Act, a firm can be assessed to tax independently of its partners. A partnership firm therefore enjoys a quasi independent status.

Can one deal with one of the partners of a partnership firm?

Yes. The law presumes that each partner is an agent of the other and dealing in good faith with one partner binds the other partners as well. There are certain exceptions to this rule, which is answered in the next question.

What are the acts that all partners should give express consent to do?

Submitting a suit for arbitration, transfer of immovable property, acquisition of immovable property, withdrawal of suits is all forbidden except by the consent of all partners or by the usage of custom to the contrary.

Is the firm liable for the wrongful act of one partner?

Yes. The firm and all the partners are liable for the wrongful act or fraud which causes loss or injury to any third parties.

Should a retiring partner give notice of his retirement from the firm?

Every partner will be liable for the acts of the firm even if he has retired, if he has failed to give public notice of his retirement. Such notice should be given to the registrar of firms and by announcements in the local official gazette.

Does the death of a partner dissolve the partnership firm?

Yes. The death of a partner automatically dissolves the partnership firm. It is however usual for the partnership deed to provide beforehand that the firm should continue in spite of death, retirement or insolvency of a partner.

What is a partnership at will?

When the partnership deed does not contain any provision for the duration of the partnership nor conditions for the termination of partnership, it is a partnership at will.

What is the legal status of partnership property?

Any property can be treated as the property of the firm by simply showing it as such in the book of accounts. This would constitute partnership property and all partners are joint owners of the partnership property as increased or decreased by profits in the course of business. Property belonging to an individual partner does not become the firm's property simply by being used for the purpose of the partnership.

Still have confusion?

Don’t worry!! Our expert will help you to choose best suitable plan for you. Get in touch with our team to get all your queries resolved. Write us on info@ebizfiling.com or call us @+91 8262 990 990.

Here are best alternatives you can get

ESSENTIAL

1,999/- INR (All inclusive)

Get Started
  • Drafting of deed
  • PAN + TAN

Easy EMI's | Transparent Pricing

Popular
ENHANCED

7,999/- INR (All inclusive)

Get Started
  • Drafting of deed
  • PAN + TAN
  • Trademark Application (1 Application 1 Class Small Enterprise)

Easy EMI's | Transparent Pricing

ULTIMATE

13,999/- INR (All inclusive)

Get Started
  • Drafting of deed
  • PAN + TAN
  • Trademark Application (1 Application 1 Class Small Enterprise)
  • Registration of Firm

Easy EMI's | Transparent Pricing

Need more personalised solutions? Get in touch with us at +91 8262 990 990 or email info@ebizfiling.com