Partnership Firm

“Partnership” is the relation between persons who have agreed to share the profits of a business carried
on by all or any of them acting for all.
Persons who have entered into partnership with one another are called individually, "partners" and
collectively "a firm", and the name under which their business is carried on is called the "firm-name".
The partners will enter into agreement, it can be oral or written. However, it avoid confusion and
misunderstanding anf keep future in mind it is advisable to reduce terms and conditions and other
particular in writing. Agreement in writing form is called partnership deed.

Benefits to work in partnership firm:

1. It can be started with two persons
2. East to commence
3. No compliance with authorities
4. No Audit required
5. Easy to wind up
6. East for admission of partner and resignation partner
7. Synergy

Information/Documents required for partnership deed:

1. Name of the firm
2. Stamp paper as per state stamp act
3. Pan Card of partners
4. Adhar Card of partners
5. Registered office address
6. Registered office: whether leased or owned
7. Business activity of partnership firm
8. Capital contribution by partners and its ratio
9. Profit Sharing ratio
10. Interest on capital
11. Drawings and salary by partners
12. Witness information and signatures
13. Other terms and conditions

Registration of partnership deed
As per provisions of Indian Partnership Act, 1932 there is no requirement for the registration of
partnership deed. In India, most of the business works in partnership firm. As formation of firm
is easy with minimum cost as compared to incorporate private limited companies.
The registration of partnership deed is a simple process with nominal and documents required
to be submitted to Registrar of Firms of the state in which registered office of the firm situates.

Required documents for the registration of firm as adverted below:

1. Form 1 (Application for registration)
2. Affidavit
3. Copy of partnership deed
4. Registered office address proofs (lease deed or copy of registry)
5. Pan Card and adhar card of partners
6. Passport size photographs

Benefits for the registration of partnership deed:

1. Power to file case against third parties
2. Power to file suit against co-partners
3. Easy compliance

Work to do

1. To apply PAN/TAN
2. Opening of Bank account
3. Other registration – GST, PF, ESI, Trademark, Import Export Code, etc.