Who is a Partner?

When two or more people or companies form a group with the purpose of running a Business and sharing profits and losses that may be generated by their combined inputs, such an arrangement is called a Partnership.

 

What is a Partnership Firm?

A company whose ownership is divided between two or more people or companies is called a partnership firm. In simple terms, no single individual or company is the complete owner of the firm and major decisions are usually taken after consulting all the partners (owners). Partnership firms will be registered under the Indian Partnership Act, of 1932.

What type of partnership would be the best for me?

If you have a group of friends/Business partners willing to form a company together, it would be best to register your firm as a Limited Liability Partnership since it offers many benefits and also protects against unlimited losses.

   Benefits of registering as a Partnership firm :​

 

Registering as a partnership firm over a sole proprietorship has many benefits Some of them are :

✓ Easy Formation: A partnership firm can be easily formed in one day since it does not require a legal registration but a partnership deed. The absence of legal formality makes it hassle-free and cost-effective.

✓ Larger Resources: A partnership firm can accumulate financial resources easily since it has more partners who can input funds whenever needed.

✓ Flexibility in Operation: Responsibility to run the Business gets divided amongst partners hence workload gets reduced unlike in the case of a sole proprietorship.

✓ Easily Acquire Loans: Banks and financial institutions are more likely to give loans to a partnership firm over a sole proprietorship. Having more partners increases credit scores and thus helps in raising funds.

✓ Liability Sharing: Losses are shared among all partners in a partnership firm compared to being borne by a single owner in a sole proprietorship.

✓ Easy to Dissolve: With the consent of all partners in the firm, a partnership firm can be dissolved by issuing a notice of the agreement. It is also called Voluntary dissolution.

Registration of Partnership Firm & firm registration procedure under the Indian Partnership Act, 1932

 

Partnerships firms are very easy to form and they can be established in a single day. Partnership deed registration will be done by the respective Registrar of Firms. Partnership deed registration fees will be collected by the Registrar of Firms. Tax Robo will help with the online registration of partnership deeds in the state of Tamilnadu. After satisfying with valid proof of documents before the registrar, the Registrar of the Firm will issue the partnership firm registration certificate.

We at Tax Robo are committed to helping you set up your very own Partnership firm, without going through hassles of paperwork and complicated legal formalities.

From initiating the process to its completion, we'll take care of everything while ensuring your new partnership firm is as solid in practice as it is on paper.

We'll also guide you through ways to file Taxes effortlessly while saving money and getting licenses and permissions without breaking a sweat!

Just give us a call and we'll be at your service.

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