Partnership is one of the most important characteristics of a small-scale or large business organization. A partnership firm is defined as a business or company where two or more persons join hands or contribute a specific percentage of resources for the formation of the company and in the end, divide the profits as per the agreed ratio.
Partnership business includes all kinds of trade, occupational activities and professional business activities. Partnership businesses are a lot easier to start and set up compared to other forms of low-compliance business. The partnership firm regulations are governed by the Indian Partnership Act, 1932. The people who join hands to form a partnership entity are called partners. The contract among the partners that is formed is called a partnership deed and it regulates the business relationship that exists between the partners along with the partnership firm they founded.
Why there is need for registration of a Partnership Firm
The registration of a partnership firm under the present Indian Partnership regulations is optional but not mandatory. The registration of the partnership firm is well within the discretion of the partners and it is also a voluntary submission. The registration can be done during the commencement of the business or its continuance. But partnership companies should register because registered firms avail some special rights, privileges, and benefits than non-registered companies, including legal and tax immunity.
In a highly competitive business environment, India's business has changed dramatically since the introduction of the market economy. Starting a business has been governed by a lot of national and international regulations as the Indian economy integrated with the global economy. In this scenario, the registration of a partnership firm has become extremely important. The organizations are now offering specialized partnership firm registration services are given. The general procedure for partnership firm registration is as follows:
- Offering consultation and professional know-how in planning
- Drafting partnership deed and related documentation
- Receiving of the certification and follow-up
- Application and use of PAN
- Stamp the name of the Firm
Scope of liability in case of partnership firm
Each shareholder is individually responsible jointly with all other shareholders, as long as he/she happens to be a shareholder. He is individually responsible for all actions or activities performed by the firm, particularly commercial transactions. This means that all partners will be liable if any damage or loss is caused to a third party or if a penalty is imposed, even if the damage or loss is caused by one of the partners.
Why RTS Professional Study
RTS Professional Study is a top-notch online Pen Drive and Online Certification Course provider along with top-notch paid services whether it is financial and industrial-related documentation services, including partnership firm registration services. It offers comprehensive partnership firm registration and LLP Firm Registration services. As we are a professional partnership firm registration services, it delivers high-quality and transparent services. Other professional paid services include GST registration services, Company registration services, and Trade-mark registration. Search for the best partnership firm registration services in India.
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