What is a Partnership Firm?
A partnership firm is a simple and cost-effective business structure where two or more individuals jointly own and manage a business under a mutually agreed deed. Though Limited Liability Partnerships (LLPs) have gained popularity, partnership firms remain relevant for small businesses due to their ease of formation and minimal compliance requirements.
Why Choose a Partnership Firm?
Quick and Easy Setup: Registration is optional, enabling you to start operations swiftly.
Low Compliance Burden: No mandatory annual filings or audits for unregistered firms.
Cost-Efficient: Ideal for startups and small businesses, with fewer regulatory costs.
Suitable for Micro Businesses: Especially beneficial for enterprises with multiple founders.
Documents Required
- Name, Aadhar of Partners and terms and conditions of Partnership
- Original, signed Partnership Deed
- Affidavit of partnership intent
- Rental/lease agreement of business premises
Registration Process
File an application with the Registrar of Firms in Prayagraj, enclosing:
- Completed registration form
- Notarized affidavit
- Certified Partnership Deed
- Address proof of the business location
- Once verified, the Registrar will issue a Certificate of Registration.
What Should Be in the Partnership Deed?
Include details like partner names and addresses, firm name, business start date, capital contributions, profit-sharing ratios, and rules for changes in partnership.