Partners contribute funds to the business, providing a larger financial base for operations and growth.
Partners bring diverse perspectives and expertise, leading to better decision-making and problem-solving.
The financial risks of the business are distributed among the partners, reducing individual exposure.
Partners are often more motivated to succeed due to their direct stake in the business.
Partnerships are generally easier to set up compared to corporations, with fewer legal formalities.
Ordinary Partnership: This is the most common type, where partners share profits and losses in proportion to their capital contributions.
Limited Partnership: In this type, there are at least one general partner with unlimited liability and one or more limited partners with limited liability.
Partnership Deed Identity proof and address proof of all partners Rent agreement or proof of ownership of the business premises
The registration process typically takes around 15-20 days, depending on the efficiency of the Registrar of Firms office.
A Partnership Deed is a legal agreement that outlines the terms and conditions of the partnership, including the names of partners, capital contributions, profit-sharing ratio, responsibilities, and dispute resolution mechanisms.
No, a minor cannot be a partner in a partnership firm.
Yes, a foreigner can be a partner in a partnership firm in India, subject to certain conditions and restrictions.
Partnership firms are taxed as separate entities. The firm's income is taxed at the corporate tax rate, and partners are taxed on their share of profits.
Limited liability for limited partners (in limited partnerships)
Easy formation and management
Flexibility in decision-making
Shared risks and responsibilities
Unlimited liability for general partners (in ordinary and limited partnerships)
Potential for conflicts among partners
Difficulty in transferring ownership
Limited access to capital compared to corporations
