Reasons to register A Partnership
EASY TO START
A Partnershio easy to form as no legal formalities are involved. Its registration is also not mandatory. However, if the firm is not registered, it will be deprived of certain legal benefits such as No suit by a partner against other partners or firm, No suit against any third party,No right to counter claim or to claim setoff.
No Restiction on Name of the Business
Business name need not be registered.Any name can be choosed even if similar to other business entities unless trademark is registered.
Members of Proprietorship Business
Two or More persons or group of persons
Two or More Partnership Firm
Minimal Rgulatory Compliance
Partnership business will not have more compliance to be followed legally like other business such as company. Annual Filing is not required to be filed with registrar of partnership.
The partnership deed will determine the ownership of the firm, profit sharing ratio, rights and responsibilities of each of the Partner.
Liability of Partners
In case of General Partnership liability of partners will be unlimited. In case of Limited Liability Partnership liability of Partners will be Limited