PARTNERSHIP FIRM

This is one of the oldest forms of entities prevailing in India. Partnership emerges out of the agreement between two or more partners wish to start a business. Partnership is defined as an agreement to share the profits or losses arising on account of business activity carried by all or one of them acting on behalf of all.

In India, Partnership business entity is governed by Indian Partnership Act 1932. The owners of a partnership business are individually known as the "partners" and their business is collectively known as a "firm", which is necessarily their firm-name. Partners need to sign a Partnership Deed, and at once the partnership firm comes into existence. Partnership firm has to have its’ own name.

The some partners in a firm may be active partners and some may be dormant partners.

The Indian Partnership Act, 1932 provides for the registration, but this is not compulsory, except for the state of Maharashtra. It has been made compulsory in Maharashtra, as per the state amendment of 1984, whereby one year time limit is fixed for registration.

A Partnership Firm can be registered at any time at the option of the partners. However, registration of Partnership Firm confers certain rights to the registered business entity. For further queries CONTACT US.