PARTNERSHIP FIRM REGISTRATION

When a business is owned, managed and running by two or more individuals it is called a partnership business and the terms & condition of management, ownership of partnership business written in a agreement which is called “Partnership Deed.”

Now you can get your partnership firm registration just starting from Rs. 1999/- onwards

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About Partnership

When a business is owned, managed and running by two or mo re individuals it is called a partnership business and the terms & condition of management, ownership of partnership business written in a agreement which is called “Partnership Deed.” The partnership business are widely used in India to mange, owned a business by two or more individuals. The partnership is valid if the terms & conditions, ownership are properly written down in agreement and on which the applicable stamp duty must be paid and get registered notarized.

The partnership is governed by Indian Partnership Act, 1932, when the deed is silent on any point or not mentioned in the partnership deed then the provision of Indian Partnership Act, 1932 are applicable to decide.

TYPE OF PARTNERSHIP FIRMS IN INDIA

There are two types of partnership firms formed in India;

1. Traditional Partnership firm formed by a partnership deed between the partners and it is governed by Indian Partnership Act, 1932.

2. On other hands the partnership firms formed as a Limited Liability Partnership Firms (LLP) which are governed under Limited Liability Partnership Act, 2008 and incorporate by registrar of companies.

What are the differences between traditional partnership firm and limited liability partnership (LLP) firm?

The differences are summarised below as under

Basis of Difference	Traditional Partnership	Limited Liability Partnerships (LLPs)
Liability of the partners	Unlimited personal liability of each partner for dues of the partnership firm personal property of each partner also liable.	NO personal liability of partner except in case of fraud partner s liability is limited to his agreed contribution
Joint Liability on a Misconduct	Every partner is liable jointly with all the other partners and also severally for all acts of the firm done while he is a partner.	No partner is liable on account of the in dependent or unauthorized acts of other partners thus allowing individual partners to be shielded from joint liability created by another partner’s wrongful acts or misconduct.
Succession	In the absence of agreement to the con- trary death of partner dissolves a firm	Death of partner does not dissolve LLP
Maximum Number of Partners	Maximum number of partners-50	No limit on maximum number of partners
Role of partner as Agent	Every partner of firm is agent of firm and also of other partners He can bind partnership firm as well other partners by his acts.	Every partner of LLP is agent of LLP but not an agent of other partners of the LLP Thus, he can bind LLP by his acts but not other partners [However LLP agreement can restrict powers of individual partner]
Audit Compliances	NO requirement to get accounts audited unless section 44AB of Income-tax Act is attracted	Annual Audit of accounts by CA in practice is compulsory for LLP is exempt from audit if: (1) Its turnover does not exempt 40 lakhs; and (2) Its capital contribution does not exceed 25 lakds
Number of Compliance	Less compliances	More compliances
Partner as minor	Section 30(1) of Indian partnership Act 1932 expressly bars a minor from becoming partner in a partnership firm.	No express legal bar on a minor becoming a partner, Any individual can become partner provided he is of sound mind and is solvent.

THE ADVANTAGE OF PARTNERSHIP FIRM

DISADVANTAGE OF PARTNERSHIP FIRM

TYPE OF REGISTRATION AVAILABLE FOR PARTNERSHIP FIRM

TIME FRAM TO START THE PARTNERSHIP FIRM

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The partnership firm registration is now very easy and cost effective at Legalman
Now you can get your partnership firm registration just starting from Rs. 1999/- onwards