Legaljini
account sourcing in mumbai

Partnership formation

Partnership formation

Another way to start a business is to form a partnership firm where two or more persons join hands to carry out a business for profit. The partnership firm is governed under the Indian Partnership Act, 1932. It is owned, controlled and managed by the partners of the firm. In other words, individuals come together and pool capital and skills and organize a business which is called partnership firm. A partnership deed is sufficient to create a partnership firm. The partnership firm is of two types i.e. registered partnership firm and un-registered partnership firm.

It is not necessary to get the firm registered however, preferable to get the partnership firm registered under the Indian Partnership Act, 1932. This is because if the firm is not registered partners cannot file a case in any court against the firm or the partners. Registration of the partnership firm is voluntary in most of the states. In Maharashtra,registration of the partnership firm is almost compulsory. At Legaljini, we can help you to form registered or un-registered partnership firm in India.

 

Advantages of Partnership formation

Easy formation:

Partnership is a contractual agreement between the partners to run the an enterprise. Legal formalities associated with the formation are minimal. It is one of the simplest and economical ways to form and operate.

Name registration:

The proprietorship firm can be named after the owners. The firm is nothing but the abbreviation of partners or any good trade name which can help business can be used to grow business, subject to availability under Trademark and/or Domain Registry. The partnership firm can choose any name of its choice and it should not infringe a registered trademark. A firm name shall not contain any of the following words – namely – "Crown", "Emperor", "Empress", "Empire", "Imperial", "King", "Queen", "Royal", or words expressing or implying the sanction, approval or patronage of Government, except when the State Government signifies its consent to the use of such words as part of the firm name by order in writing.

More capital available:

Due to more number of members, it may be possible to pool together more resources. In other words, partners can contribute more capital, more efforts and more time for the business.

Partnership formation Process

A minimum of two designated partners are required to form a LLP.

01

Suitable Name

Select a suitable name of the partnership firm.

02

Drafting

Drafting of partnership deed.

03

Registration

Registration of the partnership deed with Registrar of Firm (ROF) with the payment of requisite fees.

04

Documents scrutinized

Get the documents scrutinized with ROF.

05

Certificate of Registration

Obtain “Certificate of Registration” of Partnership Firm