Partnership Firm

A partnership firm is an association of two or more persons who agree to pool their financial resources and managerial abilities for carrying out a business and profession. A sole proprietor being a person cannot exponentially expand his business unless he has a partner who can assist him in having a vision, financial resources, and share managerial roles.

The Indian Partnership Act, 1932 defines partnership as "Partnership" is the relation between persons who have agreed to share the profits of a business carried on by all or any one of them acting for all. The persons who have agreed to join in a partnership are individually called "Partners" and collectively a 'firm'. A partnership firm can be formed with a minimum of two partners and it can have a maximum of twenty partners.

CharteredMunshi will assist in registering your partnership firms

• Our team will get in touch and understand your business and need to register a partnership firm.
• You need to upload your documents on our portal; alternatively, you may also send them through WhatsApp or email.
• After verifying your documents we will draft a partnership deed and send it to you for your approval. Every partner needs to sign on partnership deed and get it printed on the stamp paper of the respective state.
• We will apply for a PAN card in the name of the firm.
• We will assist in opening a current account in the name of your firm.

What Are the Disadvantages of Registering a Partnership Firm?

• UNCERTAIN EXISTENCE -Due to death, insolvency, bankruptcy. lunacy, retirement can put an end to a partnership firm.
• RISK -The Risk of unlimited liability vests with every partner of the firm. Apart from financial risk, there is another risk as to acts and mistakes of other partners which can disturb other partners as well.
• RISKS OF HARMONY –A certain risk always lures between partners of a potential dispute or contrast of thoughts.
• DIFFICULTY IN MONEY WITHDRAWAL –Partners have no easy way to withdraw money from the firm as per their will; they have to seek a permit and agreement from each other before making a withdrawal.
• DIFFICULTY IN EXPANSION –In the case of expanding the business capital by inheriting more partners, there are certain drawbacks as the number of partners is limited to twenty only.
• LACK OF INSTITUTIONAL CONFIDENCE -A partnership business does not enjoy much confidence in banks and financial institutions. It is because the nature of its activities is not disclosed in public and the agreement among partners is not regulated by any law. As a result, large financial resources cannot be raised by the partnership and the growth of the business cannot be ensured.

Why CharteredMunshi?

We value all our customers and attempt to offer our services as though they were our 'first client'. We ensure that the process is fast and smooth. Unlike others, we do not outsource our work and offer in house services coming through our specialists who are experts in their respective fields. We will assign you a dedicated manager who will support you from the start to the end of the process and address any queries that you might have.