Partnership Firm Registration is one of the most popular business or company formation types in India. Because it is easy to form and the minimum requirement is only two partners, many entrepreneurs choose to have Partnership Firm Registration Online. In this article, we will understand the Partnership firm Advantages and Disadvantages.
However, it is important for business owners to duly understand the requirements and compliances of each company formation type. A wrong company formation can result in termination of business or even loss of your personal assets. Partnership Firm is also one of the company formation types that you should know about in detail.
What is a Partnership Firm?
The partnership is the simplest and quickest way to form a legal entity in India.
In Partnership Firm Registration, two or more business partners can start a business after forming a Partnership Deed.
Furthermore, Partnership Firm Registration is necessary to get valid legal documents such as PAN and TAN.
As per Indian Rules and Regulations, you can define a Partnership Firm as a relationship where two or more individuals form a separate legal entity known as a Partnership Firm and share the profits of a business earned by all or anyone on behalf of them.
In simple words, A Partnership Firm is like a team that works together to conduct the business.
It is most common for startups or MSMEs to choose Partnership Firm Registration Online as it is quick and easy to form.
All about Partnership Firm Advantages and Disadvantages
The most significant Partnership Firm Advantages and Disadvantages are as follows:
| Partnership Firm Advantages | Partnership Firm Disadvantages |
| It allows you to make decisions quickly. No need to wait for board approval or shareholder’s decision. | Other Partners’ decisions might not be in accordance with yours. As a result, a serious business decision may take a lot of time. |
| You can even start your business through Partnership Firm Registration Online in a day or two. | It is not a separate legal entity. Business Partners are also liable for debts or losses. |
| You get mutual support and other people’s expertise for running the business. Unlike, Insole proprietorship where you are the sole person dependent on your expertise. | If partners don’t decide the leader among themselves, the partnership firm may not be able to take the right decision at the right time. |
| The registration cost of the Partnership is nominal and the tax liability is also less. | Misunderstanding can cause disruption in business activities. |
| Multiple partners can unite together and arrange funds for the business. | Partners have to share the profits among them. |
The process to get Partnership Registration Online
- Consult our business advisors for eligibility and detailed document requirements.
- Create an account on our web portal and submit the necessary documents and information for Partnership Registration Online.
- Choose the package as per your requirement and make the payment at your convenience.
- Our experienced expert of Partnership Firm Registration will have a conversation with you to gather necessary information and draft your Partnership Deed.
- The expert will also assist you to execute partnership deeds on the stamp paper.
- Lastly, you will receive the Partnership Registration Certificate, PAN, and TAN over the email.
Hence, this is the complete stepwise process to get Partnership Registration Online through our web portal. In addition, You can have custom packages as well as resolve all your other queries via a call to us.
Moreover, you require any kind of guidance related to Company formation. Please feel free to contact us at 8881-069-069.
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