Partnership Firm

Partnership Firm

A Partnership firm is a legal agreement between two or more individuals for carrying business operations as owners. Partnership act was introduced in the in year 1932. Partnership Deed defines the terms and conditions of partnership and is a legal document. Partnership can be dissolved easily. The clauses in Partnership Deed have all details like Nature of partnership, Duration of partnership, Name of the firm, Capital, Share of partners in Profits and losses, Bank Account firm, etc. This Deed has to be registered with the registrar of firms. Partnership deed does not work on perpetual succession. Partnership liabilities are unlimited and independent of the ratio of shares of partners. Total number of partners can go up to 20as per IPA1932. A company can be a partner to another partnership firm.

Why people form partnership firm?

  • Capital can be shared by partners.
  • It is easy to form partnership firm.
  • Different people with different skill set can run the business.
  • Roles and responsibilities can be shared between partners.

What all has to be mentioned in a partnership deed?

01
Unique name of the firm

02
Goal of business

03
Place of business

04
Address and names of partners

05
Date of commencement

06
Duration of partnership.

07
Capital contrition by partners

08
Ratio of profit sharing

09
Interest payable on capital

14
Rent agreement of the property

11
Methods of audit and accounting.

12
It mentions powers to borrow loans.

10
Salary and commissions payable to partners.

13
Rules in case of death, new partner joining in and exit

Benefits Of SEO

DIN is not required.

Digital Signatures are not is required.

Audit is not required up to a limit.

It is not necessary to maintain Annual filling of accounts

Partnership firm can be easily formed.

There is no minimum paid-up capital.

You can contact XAAS Technologies for starting a partnership firm in Delhi NCR.
contact us