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Partnership Firm
Partnership firm is a business entity registered under the Partnership Act, 1932 where two or more people join together as partners for running & managing a business while sharing the profits and losses in an agreed ratio.
It is not mandatory to register a partnership but it is very risky and is not recommended by any professional experts.
Cost
Forms which will be filed by Ucomply
DIR-3 KYC
Drafting of partnership deed
Documents required from your end
PAN and Adhaar cards of all the partners
Capital contribution
Profit sharing ratio
Any other clause which needs to be inserted
Address of firm along with proof
FAQs
1. What are the benefits of a Partnership Firm?
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Minimum Compliances: Managing a partnership firm is very easy as there are no mandatory compliances of auditing for small businesses unlike a limited liability partnership or private limited company.
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Cost Effective: Registering and maintaining a partnership firm does not require involvement of Digital Signature Certificate and Designated Partner Identification number which makes it more economical than other forms of businesses.
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Easy to Start and Exit: Partnership can be registered only with a partnership deed and PAN Card of the firm. Hence, it is easy to start and exit.
2. What are some major terms and conditions mentioned in the deed of a partnership?
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Details of the firm and partners
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Profit and Loss sharing ratio among the partners
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Nature, commencement and duration of partnership firm
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Salary and commision of partners
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interest on capital and loan
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Provisions related to capital introduction and capital withdrawal
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Accounting and Auditing
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Banking and Voting rights
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Conditions for admission, resignation and retirement of partners