A Partnership Firm is a trendy form of industry constitution for industries that are owned, managed and controlled by an Association of People for income. Partnerships firm are relatively simple to start are is prevalent amongst small and medium sized industry in the unorganized areas. With the introduction of Limited Liability Partnerships in India, Partnership Firms are fast losing their occurrence due to the further advantages offered by a Limited Liability Partnership.
There are two types of Partnership firms, registered and unregistered Partnership firm. It is not necessary to register a Partnership firm; however, it is advisable to register a Partnership firm due to the added advantages. Partnership firms are produced by drafting a Partnership deed amongest the Partners and India Filings can help start a registered or un-registered Partnership firm in India.
Easy to Start
A Partnership is simple to form as no burdensome legal official procedures are involved. Its registration is also not necessary. However, if the firm is not registered, it will be underprivileged of certain legal profits. The Registrar of Firms is responsible for registering partnership firms.
Since the name of a Partnership firm is not registered, a Partnership firm able to make a decision to have any name – as long as it does not infringe on a registered trademark. Though, since the name is not registered, any other person can also use the same trade name unless trademark registration is obtained.
Annual Filing NOT Required
A Partnership firm is not necessary to file its annual accounts with the Registrar each year unlike a Limited Liability Partnership or industry. Limited Liability Partnership’s and industries are necessary to file their annual accounts with Registrar of Companies each year.