Registering Your Partnership Firm:
Starting your business becomes easy when you have financial and management support from your partners. Start your business simply and securely. Register your Partnership Firm to reduce the risk of loss in business. When you wish to start your new business, you require financial stability and investment in the business. You also need support staff who can advise you, support you financially, share assets, and manage your business work. When you work with your business partners, you require mutual understanding, trust, and financial support in both profit and loss. For this, you can secure your business by executing a Partnership Deed mentioning all the terms and conditions of your business, sharing profit and losses, legal liabilities, and duties of all the partners, etc. It is a kind of mutual contract to secure all the partners from losses in the future. The Partnership Deed is a legal document that can be executed by business partners who are willing to start a new business.
Section 4 of The Partnership Act, 1932 defines "PARTNERSHIP," "PARTNER," "FIRM," AND "FIRM-NAME" as
- "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 a 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."
Types of Partners:
General Partnership:- In a general partnership, all partners share equal responsibility for the management and liabilities of the business.
- Each partner is actively involved in the day-to-day operations and decision-making processes.
Limited Liability Partnership (LLP):
- An LLP combines elements of partnerships and corporations.
- Partners in an LLP have limited liability, protecting their personal assets from business debts.
- Unlike a general partnership, LLPs may have partners who are not actively involved in the business management.
Limited Partnership:
- In a limited partnership, there are both general partners and limited partners.
- General partners manage the business and are personally responsible for its debts.
- Limited partners contribute capital but have limited involvement in management, and their liability is restricted to the extent of their investment.
Dormant or Sleeping Partners:
- Dormant or sleeping partners invest capital into the business but do not actively participate in its day-to-day operations.
- They are typically silent investors who share in the profits and losses but don't contribute to management.
Active or Working Partners:
- Active or working partners are fully involved in the daily operations and decision-making of the business.
- They contribute not only capital but also their time, skills, and expertise to the business.
Nominal Partners:
- Nominal partners are individuals whose names are included in the partnership deed, but they do not contribute capital or participate in business operations.
- Their inclusion may be for various reasons, such as adding credibility or fulfilling legal requirements.
Partners in Profit Only:
- Partners in profit only, also known as 'capitalists,' contribute capital to the business but are not involved in its management.
- They earn a share of the profits but are not liable for day-to-day decisions or business debts.
Grow your business by forming a Partnership Firm.
Documents Required for Registration of Partnership Firm:
- A certified true copy of Partnership Deed (In English)
- A certified true copy of Partnership Deed (In Marathi)
- Affidavit of Partners
- Authority Letter signed by all partners if documents are submitted by C.A or Advocate
- Any other Documents (if required)
