When two or more than two persons agree to jointly start a business under a common business name and share the profits and losses of it on such terms and conditions as agreed by all the partners.
Advantages of Partnership:
- Management by more than one person as two heads are better than one
- Scope of more availability of capital.
- Improved management with more than one owner.
Disadvantages of Partnership:
- Unlimited Liability of all partners.
- Interference of all partners may lead to differences and conflict.
- Slower, more difficult decision making.
PROCESS TO REGISTER A PARTNERSHIP FIRM
- Choose name of Partnership Firm.
- Create Partnership Agreement or Deed.
- Apply for PAN Card of Partnership Firm.
- Open Current Bank Account.
DOCUMENTS REQUIRED.
- ID and Address proof of partners like pan card/voter ID card/Aadhaar Card/ Driving Licence copy of the partners.
- Address Proof of Business Place.
- Where place of business is:-
- Rented : Rent agreement and No Objection Certificate from Landlord is required.
- Owned: Any utility bill like electricity bill or any other address proof is required.