Partnership Firm registration is sought after by businesspeople who prefer a modern business structure that is managed and controlled by a group of people for profit. Due to its inexpensive nature and limited compliance, a Partnership Firm is a lucrative option for a home-run business. It can be both registered as well as unregistered. However, people choose to incorporate a Limited Liability Partnership Firm over a Partnership Firm as the latter poses unlimited liability on the partners. We at Startup Choice will help you with in the registration process by drafting the deed and carrying out required registered compliances.
Advantages of Setting Up a Partnership Firm Registration :
There is a minimum requirement of two partners and a maximum of 20 partners to start a Partnership Firm.
There is no such requirement of minimum capital in registration of a Partnership Firm.
The Registrar of Firms under Indian Partnership Act, 1932, registers Partnership Firms.
Yes. The death of a partner automatically dissolves the Partnership Firm. It is, however, usual for the partnership deed to provide beforehand that the firm should continue in spite of death, retirement or insolvency of a partner.
A Partnership Firm cannot become a partner of another firm because it is not a legal person but a partner of such firm can be a partner in his individual capacity in another firm.
It is not compulsory to register a Partnership Firm, however, it is advisable to register the Partnership Firm in order to avoid conflicts and future disputes.