• Sun. Apr 21st, 2024

What Should A Lay Man Know About Partnership Firm?

When you think of running a company, you should know about everything right from the rules, laws and procedures. You cannot simply pick anything and get started. If anything goes wrong, you may be at the losing end. 

Now, if you are looking forward to go for a partnership company or business, you must be sure about Partnership firm registration.  However, if you are a new person to this world of businesses and registration, here are things you should know.

What do you understand by partnership firm?

It is a type of firm or company that is established between two or more that two partners with the goal of earning profit is known as a Partnership Firm. It is not compulsory to register a partnership firm but there are actually added benefits if a partnership firm is properly registered. Partnership deed is the type of legal document that is made up to form a partnership firm.

You should know about the Indian Partnership Act 1932 that is the governing law which regulates the partnership firms in India. If you follow this act, the partnership is the relation or bond between individuals. These individuals agree to share the profits of a particular business performed by all or any of them acting for all”. Maximum number of members in a partnership is ten for a type of banking business and that of twenty for other sort of businesses to step into a partnership firm.

Similarly keep in mind that these partnership firms are not distinct legal entity whereas the partners are.  Then a partnership firm cannot just get debtor or creditor and cannot just own a property. The property, debit or credit of a specific partnership firm is generally for the partners in the eyes of law. Moreover, the way in which losses or profits should be shared amongst partners need to be clearly mentioned in the partnership deed to avoid any sort of confusions in the times to come. Every single partner can perform business on behalf of other partners. You should definitely keep in mind that a partnership firm is definitely going to be dissolved if the number of partners lessen than two in case of death, incapacitation or even resignation of any partner.

Documents needed for partnership registration

Well, below are the documents that are compulsory for Partnership registration.

  • ID Proof of each and every partner
  • Address evidence of all partners
  • Address proof of the place of Business  

If any of these documents is missing, the partnership is not going to be able to get further. So, be careful with documentation and have them all in proper sequence.

Registration of your partnership firm

One can register a Partnership firm simply by going through the steps mentioned below:

  • Go to the website that has the authority to do so.
  • Fill a simple form given on the website asking basic information about owner or that of proprietor and business to get Partnership Deed
  • Then you must get this Deed printed on Stamp paper of particular value and get it registered with the guidance of any nearby Advocate or that of Registrar.


So, check out the option of partnership deed registration online and ensure that you are on the right path. This way, you can be sure that you smoothly venture into this field of business.