IT IS SIMPLE - ITS A PARTNERSHIP
- Simple form of Business Entity
- Hardly any Legal Complainces
- Suitable for those who want to start a business along with someone, but do not want many legal compliances.
ADVANTAGES
- Simple to form. No Cumbersome Legal Formalities.
- Very few Legal Compliances
- Ease of Operations
- Lower Compliance compared to a Private Limited Company
- Zero Compliance cost compared to a Private Limited Company
- No compulsory audit
DISADVANTAGES
- Minimum 2 People are required
- Funding is not availablle as easily as to a company/LLP.
- Unlimited Liability of Owners
- Business will get Disolved due to Death or Insolvency of any partner
DOCUMENTS REQUIRED
FOR REGISTRATION
Identity proof for Partners
Address proof for Partners
Address proof for Partnership along with NOC from landlord.
Partnership
What is Limited Liabilty:
It simply means that the owners (partners) will be personally responsible for the loans & debts taken by the partnership and also for the activities of the partnership.
Is my Partnership Different from Me?
YES. Your partnership firm is different from you. Your Partnerhsip firm can buy/sell properties in its own name, it can enter into contracts, it can hire employees, buy/sell products, pay taxes in its name etc.
What do I need to know about Capital?
Capital is the amount invested by the owners (Partners) into the business.
What is Partnership Deed?
It is an agreement which sets the mutual rights & duties of the partners. It sets the rules under which the partnership firm shall operate. The Partnerhsip Deed is of very high importance and should be prepared only with the help of an expert.
Is it mandatory to have a Partnership deed?
It is not mandatory to have written partnerhsip deed, but however it is advuisabel to have the deed in written to avoid misunderstanding between the partners and to have a legal prooof of the terms of the partnership.