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What is a Partnership Firm?
The need for partnership form or organization arose from sole proprietorship and joint firm limitations. With the expansion of business, it became necessary for a group of people to join hands together and supply the necessary capital and skill. A person may possess the exceptional business ability but no capital; he can have a financing partner.
Section 4 of the Indian Partnership Act of 1932 defines partnership as “the relation between a person who has agreed to share profits of a business carried on by all or any of them acting for all.”
Partnership Firm Registration.
A partnership is an association of two or more persons to carry on a business in a co-owner capacity. Each such person is called a partner. We make sure your Partnership Firm registration in Lucknow is obtained without any hassle and in a regulated manner.All the partners share the profits and losses in the proportion of their respective owners or as agreed. The amount of money that a partnership firm can commit is much more significant. This is possible because each partner can bring in a part of the total amount of capital required rather than only one person arranging the money.
“Partnership is the relation which subsists between persons, who have agreed to combine their property, labor or skill in some business and share the profits thereof between them” -Indian Contract Act, 1872.
“It is the relation between persons who have agreed to share the profits of a business carried on by all or anyone acting for all.” – Section 4 of Indian Partnership Act, 1932.
Documents required for partnership firm registration:
To have Partnership firm registration in Lucknow, you have to submit the following required documents:
Advantages of Partnership Firm Registration:
Suitability of Partnership Form of Business:
The sole proprietorship is suitable for relatively small businesses, requires small amounts of capital, risks ate not high, and decision-making needs to be quick. However, as the size of the business grows, the company needs different types of skill sets to carry out its various functions.
It needs more capital, and multiple things need to be done simultaneously. For example, customers need to be attended to, and at the same time, a bank loan may have to be negotiated. Thus, as enterprises grow large, a Partnership form of business might be more suitable for small and medium-sized enterprises. The partnership form of business has its advantages and disadvantages. However, running a small business is often the most convenient form. Here is through identifying the suitability of Partnership Firm registration in Lucknow we have been able to develop a smooth and transparent process.
Some such instances are listed below:
Formation of Partnership – Partnership Deed:
A Partnership is formed by two or more persons agreeing to conduct business. This agreement may be oral or in writing. However, it is always preferable to have the agreement in writing, so that possibility of any misunderstanding in the future is avoided. If all essential terms and conditions regarding the partnership business are agreed upon, put in writing, and signed by all partners, such agreement is called a ‘Partnership Deed.’
The terms and conditions contained in the Partnership Deed are called Articles of Partnership. Partnership Deed mainly contains details regarding internal management and relations with external parties such as debtors and creditors. It should be properly stamped as per the provisions of the Indian Stamp Act, signed by all parties, and all the partners should keep a copy of the Deed.
Partners’ rights, duties, and liabilities can be inferred from the ‘Partnership Deed.’ Only when the ‘Partnership Deed’ is silent in respect of any issue the provisions of the Partnership Act are involved.
Contents included in the Partnership Firm Registration:
The following aspects are typically covered in the partnership deed:
Here we have been able to provide you with the ideal process and procedure required in the Partnership Firm registration in Lucknow, that is available to all our clients. Our ideal way of functioning is independent solicitation and idealistic creation of the firm.
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