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Partnership Firm Registration Service
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Partnership Firm can be registered by at least two person. Partnership Registration in India is governed by the Partnership Act, 1932. Partnership Registration defines as – “ An Agreement between persons who have agreed to share profits of the business carried on by all or any one of them acting for all “.Main Features of Partnership Firm –
The main features of the partnership form of business Ownership/Organisation in a more orderly manner as follows :
- More Persons
As against proprietorship, there should be at least 2 persons subject to a maximum of ten persons for banking business and twenty for non-banking business to form a partnership firm.
- Profit and Loss Sharing
There is an agreement among the partners to share the profits and losses incurred in the Partnership business.
- Contractual Relationship
A partnership is formed by an agreement oral or written among the partners.
- Existence of Lawful Business
A partnership is formed to carry on some lawful business and share its profits and losses. If the purpose is to carry some charitable works, for example – it is not regarded as Partnership.
- Utmost Good Faith and Honesty
A Partnership business solely rests on utmost good faith and truth among the partners.
- Unlimited Liability
Like Proprietorship, each partner has unlimited liability in the firm. This means that if the assets of the partnership firm fall short to meet the firm obligations (Agreement), the partner’s private assets will also be used for the purpose.
- Restrictions on Transfer of Share
No partner can transfer his share to any outside person without seeking the consent of all other partners.
- Principal-Agent Relationship
The Partnership firm may be carried on by all partners or any of them acting for all. While dealing with the firm’s transactions, each partner is entitled to represent the firm and other Partners. In this way, a partner is an agent of the firm and of the other Partners.
- Partnership Firm Normal
- Partnership Firm registered with the Registrar of Firms.
- Limited Liability Partnership Firm.
Partnership Firm Normal
In this type of partnership firm, a normal partnership deed is prepared and it will be notarized from the Lawyer. Partnership deed is not registered with the Registrar of Firms. Low cost and early registration attract clients for this type of partnership registration.
Partnership Firm registered with the Registrar of Firms
In this type of partnership firm, a normal partnership deed is prepared and it will be notarized and partnership deed is also registered with the Registrar of Firms. This partnership firm registration cost is almost equal to Limited Liability Partnership Firm therefore very fewer clients opt for this option.
Limited Liability Partnership (LLP) Firm.
In this type of partnership firm, a normal partnership deed is prepared and it will be notarized and partnership deed is also registered with the Ministry of Corporate Affairs. This is an advanced form of the partnership firm in which Partnership Firm Name approval and all the documents are filed with the Ministry of Corporate Affairs. All the details of LLP are available on MCA Site so anyone can verify the details which ultimately create trust on the LLP.
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