Partnership Firm Registration

What is a Partnership firm?

A partnership firm is a type of business structure that is well-recognized by most of the entrepreneurs. This type of business structure is preferred with the mutual consent of all the partners of the company for a profitable purpose. Generally, the firm is managed, controlled, and owned by a set of people known as partners with some shared capital in the firm.

An affiliation of two or more individuals who have decided to merge in business activities is coined as a partnership firm. The main aim of such an organization is to gain more profit. Members of this partnership firm are named partners. All the partners or the members of the firm share the profits and losses of their in the proportion of their respective ownership and contribution.

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In the case of a partnership firm, the amount of money invested is often huge as each partner or member can contribute to the total amount of capital investment required. The decision-making partnership firm process & procedure is a corporate or collective business. Each and every partner must travel in the same way before making any decision regarding the business.

Partnership firms are of two different types, registered and non-registered firms. A Registered Partnership Firm is not mandatory in India but it is highly recommendable to register. Registered Partnership Firms enjoy various advantages which are not applicable to Non-Registered Partnership Firms. With very less documentation, rules, and formalities, a partnership registration of a firm is done as per the Partnership Act, 1932