Partnership
A Partnership Firm is a popular form of business constitution for businesses that are owned, managed and controlled by an Association of People for profit. Partnership firms are relatively easy to start are is mostly prevalent amongst small and medium sized businesses in the unorganized sectors. With the introduction of Limited Liability Partnerships in India, Partnership Firms are fast losing their prevalence due to the added advantages offered by a Limited Liability Partnership of being liability limited of the partners.
Business in the form of partnership entity in registered or unregistered form.
Though it is not compulsory or legal to register a partnership deed, but it is advisable on the part of partners to register the partnership deed and form a partnership deed to avoid future disputes.
In a Partnership firm, the partnership deed will determine the ownership of the firm, profit sharing ratio, rights, responsibilities and duties of each of the Partner. A partnership deed can be registered with the Registrar of firms.