PARTNERSHIP CONCERN

 

Partnership is an association of two or more persons to carry on a business in the capacity of co-owners. Each such person is called a partner. All the partners share the profits and losses in proportion of their respective ownership, or as agreed between them.

Like Proprietorship firm, the Partnership also does not possess any individual legal entity on its own and therefore the liability of all partners in this case is unlimited. Likewise, all the partners are liable for any wrongdoing in the partnership firm without particular reference to individual partners.

 

How to Form a Partnership Firm – Documents Required

  1. PAN Card of the Proposed Partners along with their Address Proof
  2. Selection of Name of Partnership
  3. Address Proof for Proposed Place of Business
  4. Partnership Deed
  5. Registration of Partnership (Not Compulsory)
  6. PAN Card of Partnership Firm
  7. Statutory Registration e.g. MSME/GST/TAN etc.
  8. Open a Current Account in the name of the firm

 

Advantages

  1. Easy to start as its registration of Partnership is not compulsorily.
  2. Statutory Compliances are relatively lesser in case of Partnership Firm as compared to Body Corporate
  3. Exemption from maintaining Books of Account in case of Income declaration under Presumptive Income Basis up to Rs.   2 Crores
  4. Exemption from Audit up to Rs. 50 Lacs in case of service organization and Rs. 100 Lacs in case of others or Income         Declaration under Presumptive Basis.
  5. Relatively Lower Cost of Operation
  6. Easy to wind up the operations, if required.

 

Disadvantages

  1. 1. Relatively Difficult in accessing the External Finance in the form of Debt and Equity as compared to Body Corporate
  2. 2. The Liability of Partners for the operations of the firm is joint and several extending to personal assets also.

 

Best Fit for:

  1. Generally for new Start-Up Ventures looking to start the operations jointly with other persons with a common mind and objective.

 

LEGALLANDS LLP consistently endeavours to get together the necessities and prerequisites of its customers and demonstrate to be a beneficiary aid as and at whatever point required. To bring more subtleties on same, contact our client assistance official today at connect@legallands.com

 

 

Disclaimer

 

As per the rules of the Bar Council of India, we are not permitted to solicit work and advertise. By clicking “I agree” below, you acknowledge the following:

 

  • There has been no advertisement, personal communication, solicitation, invitation or inducement of any sort whatsoever from us or any of our members to solicit any work through this website;

  • The user wishes to gain more information about us for his/her own information and use;

  • The information about us is provided to the user only on his/her specific request and any information obtained or materials downloaded from this website is completely at the user’s volition and any transmission, receipt or use of this site would not create any lawyer-client relationship.

The information provided under this website is solely available at your request for informational purposes only, should not be interpreted as soliciting or advertisement. We are not liable for any consequence of any action taken by the user relying on material/information provided under this website. In cases where the user has any legal issues, he/she in all cases must seek independent legal advice.