What is Partnership Firm?
Partnership is an association of two or more like minded persons formed with a common objective to establish a lawful business house of their choice with the idea of earning profits. However, in any business enterprise the possibility of its incurring loss cannot be ruled out. Therefore, all partners of a firm mutually agree to share all profits and losses of the business amongst them according to their predetermined shares/proportions fixed by them in the partnership agreement. Persons who have entered into partnership with one another are called individually partners and collectively a firm, and the name under which their business is carried on is called the firm name.
Partners Address Proof
Business Address Proof
Inexpensive model as compared to others
Easy to establish
Audit not required
You cannot sue a third party
You cannot go the courts if there is any disagreement between the partners inter-se
Cannot claim set-off in a dispute with third party
• You cannot go the courts if there is any disagreement between the partners inter-se
• Cannot claim set-off in a dispute with third party
• Name and place of business
• Duration of the partnership.
• Shares of each partnership in the profits and losses of the business.
• The management of the business.
• Nature of principal work agreed to be carried on in partnership.
• Number of partners and initial capital employed by each one of them.
• Provision and the manner for raising future capital, if required.
• Work distribution, if any, of each of the partners.
• Operation of Bank Accounts
• Accounting system of the business.
• Division/Devolution of goodwill of the business in case of dissolution of partnership.
• Distribution of assets and liabilities amongst partners at the time of dissolution.