A firm or company established between two or more partners with the goal of earning profit is called as a Partnership Firm.It is not compulsory to register a partnership firm but there are added advantages if a partnership firm is registered.Partnership deed is the legal document which is created to form a partnership firm.
As compare to Private Limited Registration or OPC Company Registration, Partnership Firm Registration is quite easy. You have to just draft Partnership Deed and get it register with Registrar of Partnership Firm.
In the partnership firm Registration the risk is equally distributed among all the partners. Only a single person will not be liable for the act of others. Liability will create as per terms and conditions of Partnership Deed.
There is no mandatory requirement of the audit in the partnership firm like Private Limited Company or OPC. However, the need of audit may occur in case of the turnover of Partnership Firm goes beyond a certain limit.
it is easy to operate a Partnership Firm due to non requisition of any kind of compliance as in Private Limited Company or OPC Registration. Partnership Firm do not require to communicate their business to Registrar.
The closure procedure of a Partnership Firm in India is quite easy, however in case of registered Partnership Firm, partners have to close it with the Registrar of Firm after complying small formalities.
A registered Partnership Firm can sue people or other person in case of any breach of contracts or misconduct occurred. It is to be noted that an unregistered Partnership Firm can not sue or to be sued by any person.
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