Partnership

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

  1. Choose name of Partnership Firm.
  2. Create Partnership Agreement or Deed.
  3. Apply for PAN Card of Partnership Firm.
  4. Open Current Bank Account.

DOCUMENTS REQUIRED.

  1. ID and Address proof of partners like pan card/voter ID card/Aadhaar Card/ Driving Licence copy of the partners.
  2. Address Proof of Business Place.
  3. 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.