What is Partnership Firm Registration?
The proprietorship form of ownership suffers from certain limitations such as limited resources, limited skill and unlimited liability. Expansion in business requires more capital and managerial skills and also involves more risk. A proprietor finds him unable to fulfill these requirements. This call for more persons come together, with different edges and start business.
For example, a person who lacks managerial skills but may have capital.Another person who is a good manager but may not have capital. When these persons come together, pool their capital and skills and organise a business, it is called partnership.
A partnership is a form of business organisation in which two or more persons up to a maximum of twenty join together to undertake some form of business activity.Partnership as an association of two or more persons who have agreed to share the profits of a business which they run together. This business may be carried on by all or anyone of them acting for all.
Advantages of Partnership Firm
- Easy Formation
- More Capital Available
- Combined Talent, Judgment and Skill
- Diffusion of Risk
- Tax Advantage
- Least compliance requirement
- Easy transfer of ownership with or without diluting share of profit
- Easy admission and resignation of partners.
- PAN Card & Aadhar Card of Partners – Mandatory
- Passport Size Photo (In Jpeg Format) of all partners
- Proof of Residence of all partners (Telephone Bill, Electricity Bill, Mobile Bill, Bank Statement, etc)
- Proof of registered office address in India (Electricity Bill, Telephone Bill, Maintenance Receipt (Rent Agreement if place taken on rent)
- NOC from the owner of the registered office address. (If place on Rent)