According to Sec 4 of the Partnership Act 1932, “Partnership is the relation between 2 or more persons who have agreed to share profits or losses of a business carried on by all or any of them acting for all”.Persons who have entered into a partnership with one another are called individually ‘Partner’ and collectively a ‘firm’A Partnership Firm is a business entity that is controlled by an association of people. The sole purpose of forming a partnership firm is to make profits. In a partnership firm, the partners share the liability of profit and loss of the company. Indian Partnership Act 1932 is the law that governs the partnership firm in India.A partnership deed is an agreement between the partners in a partnership firm which states the rights, duties, profits, shares and other obligations of each partner.

Following is the eligibility criteria for register a partnership in India.

• There is a minimum of two partners
• The partners may or may not share the responsibilities of the business.
• Risk is shared in a partnership form
• All the partners should agree to the terms mentioned in the partnership deed.

• Application for partnership firm registration in the prescribed Form – I.
• Duly filled Specimen of Affidavit.
• Certified copy of the Partnership deed on appropriate non-judicial stamp paper.
• Proof of ownership of the place of business or the rental/lease agreement thereof.
• Affix court fee stamp & payment of prescribed partnership firm registration fee by demand draft.

The partnership firm registration process varies from state to state. In some regions, you can get the partnership registration online. However, in most cases, the incorporation process is still offline. The reason behind this is the age of the Partnership registration act. It was established in 1932 and have not gone through any changes since then.

•  Easy to start
•  Less expensive
•  Recognition and control of law
•  Contractual Relation among partners
•  Decision making
•  Easy to raise funds
•  Sharing of Profit & loss
•  Greater borrowing capacity
•  Easily changeable legal structure
•  Very minimal legal Compliances
•  Unlimited Liabilities
•  Collective Decision
•  Sharing of Risk among partners
•  Effective management
•  Joint efforts
•  Equal rights to partners
•  Easy to dissolve