There are no restrictions as such with respect to the minimum capital requirement in case of partnership firm. The Partnership firm can be registered even with Rs. 10,000 as total capital.
Partnership Firm is very easy to form. It comes into existence merely by a Partnership Deed. Its registration is not mandatory. Even after formation, there are no annual filings to be done except Income tax returns.
As a partnership firm requires a minimum of two partners, there’s an availability of larger resources be it financial resources or managerial resources as compared to a proprietorship firm.
Its operations are scalable. Any new partner can be introduced only by executing a supplementary partnership deed. A partner can retire or can be removed by executing a similar deed.
On account of its very nature, Partnership firm enables sharing of risks by more than 1 person as the profit and losses are shared by all the partners. This ensures diversified financial risks.
Partnership firm is a legal tool for better tax planning. The partnership firm is a separate entity and its tax is calculated separately so it can offer remuneration and interest to working partners.
Prices start with 6499/- (inclusive all)
A partnership firm is an organization which is formed, owned, managed and controlled by two or more persons with a view to earn profit, each member of such a group is known as partner and collectively known as partnership firm. These firms are governed by the Indian Partnership Act, 1932.
Partnership firms are created by drafting a Partnership deed amongst the Partners.
A partnership firm must have at least two partners. But in the banking partnership firm can have upto 10 partners, while other partnership firm can have upto 20 partners.
No, registration of a partnership is not necessary. However, for a partner to lodge a complaint or sue another partner or the firm, the partnership firm should be registered, and a partnership is to be made.
Yes. The firm and all the partners are liable for the wrongful act or any kind of fraud which causes loss or injury to third parties.
When the partnership deed does not enclose any provision for the duration of the partnership nor conditions for the break of the partnership, it is a partnership at will.
A partnership firm is best for a small business. Low costs, ease of setting up and minimal compliance requirements make it a sensible option for such businesses. Registration is optional for General Partnerships. It is governed by Section 4 of the Partnership Act, 1932.