Partnership Company Services In Ujjain

Business is any kind of commercial activity aimed at earning profits lawfully. To start a business, the first and foremost thing required is ‘capital’. If the capital is provided by a single person, the business is deemed to be a single ownership or sole proprietorship. But, if the size of a business enterprise is large and if a single owner is inadequate to run it, and if two or more persons join hands together and club their resources, skill and knowledge for jointly carrying on some business to make the business more profitable, then such an association is called as a ‘Partnership firm’. And the individual sharers are called as ‘Partners’.

Partnership is based on a partnership agreement between the partners which is generally in writing. The agreement can be oral or in written, but it is preferable to have any agreement in writing always. By agreeing to the terms and conditions in the agreement, two or more persons (maximum up to 50) can legally become partners.

Breakeven Advisory, your trusted legal advisor, provides a cost-effective Partnership Registration service in Madhya Pradesh. You may learn how to register your business here. Breakeven Advisory will take care of all legal formalities and fulfil the compliances.

Partnership firms are one of the easiest to start. The only requirement for starting a partnership firm in most cases is a partnership deed. Hence, a partnership can be started on the same day. On the other hand, an LLP registration would take about 5 to 10 working days, as the digital signatures, DIN, Name Approval and Incorporation must be obtained from the MCA.

Decision making is the crux of any organization. Decision making in a partnership firm could be faster as there is no concept of the passing of resolutions.

When compared to a proprietorship firm, a partnership firm can easily raise funds. Multiple partners make for more feasible contribution among the partners. Moreover, banks also view a partnership more favourably while sanctioning credit facilities instead of a proprietorship firm.

Every partner owns and manages the activities of their firm. Their tasks might be varied in nature but people in a partnership firm are united for a common cause. Ownership creates a higher sense of accountability, which paves the way for a diligent workforce.

1. Drafting of Partnership Deed.

2. Minimum two members as partners.

3. Maximum 100 partners as per New Companies act, 2013

4. Selection of appropriate name.

5. Principal Place of business.

6. PAN card and bank account of the firm.

7. KYC of Partners

The registration of a Partnership Firm in India can take up to 30 to 60 working days. However, the time taken to issue a certificate of incorporation may vary as per the regulations of the concerned state. The registration of a Partnership Firm is subject to Government processing time which varies for each State.

If the partners of a firm wish to end the partnership, they can do so by dissolving the partnership by notice, if it is a partnership of will. A partnership can be dissolved in accordance with the terms laid out in the Partnership Deed, or they can do so by creating a separate agreement.

The biggest disadvantage of the partnership firm is having an unlimited liability of the partners. The partners have to bear the loss of the firm out of their personal estate. Whereas in a company or LLP, the shareholders or partners have liability limited to the extent of their shares. The liability created by one partner of the partnership firm is to be borne by all the partners of the firm. If the firm’s assets are insufficient to pay the debt, then the partners will have to pay off the debt from their personal property to the creditors.

The partnership firm does not have perpetual succession, as in the case of a company or LLP. This means that a partnership firm will come to an end upon the death of a partner or insolvency of all the partners except one. It may also be dissolved if a partner gives notice of dissolution of the firm to the other partners. Thus, the partnership firm can come to an end at any time.

Since the partnership firm does not have perpetual succession and a separate legal entity, it is difficult to raise capital. The firm does not have many options for raising capital and growing its business as compared to a company or LLP. As there are no strict legal compliances, people have less faith in the firm. The accounts of the firm need not be published. Thus, it is difficult to borrow funds from third parties.