There are various types for doing business in India. Partnership is one of them, Which is governed through INDIAN PARTNERSHIP ACT, 1932.
Partnership is a relation between person who agreed to share their business, profit or loss in ratio decided between them.
The partnership business shall be regulated through Contract made between partners. And where no provision is made by contract between partners for duration of their partnership, the partnership is partnership-at-will.
- Every partner has right to take part in conduct of business.
- Every partner has right to have access to and to inspect and copy any of the books of the firm.
- In the event of the death of partner, his legal representative or duly authorised agents shall have a right of access to and to inspect and copy any of the books of the firm.
- The dissolution of partnership between all the partners of a firm is called the dissolution of the firm.
- A firm may be dissolved with the consent of all the partners or in accordance with a contract between the partners or by order of court.
Advantage of Partnership Firm registration
- Capital sharing by partners. Which reduce the burden on individual and create large fund.
- Profit and loss sharing between partners gives flexibility and reduce the entire burden of loss on a single person.
- Due to involvement of different partners, new ideas and scope came together and increase chance of success of business.
Disadvantage of partnership firm registration
- Profit sharing between partners, even profit is not much still it will be distributed between partners.
- No any taxation benefit given to firm, partners are taxed on individual basis.
- The liability of partners are unlimited that’s why the concept of Limited liability partnership has been arisen.
Procedure For Partnership Firm Registration:
- Application for Registration (under section 58) to Registrar of area in which place of business of firm is situated.
- When the Registrar is satisfied that the provisions of section 58 have been duly complied with, he shall record an entry of the statement in a register called the Register of Firms, and shall file the statement.On the date such entry is recorded and such statement is filed, the firm shall be deemed to be registered.