The partners in a partnership registration may be individuals, businesses, interest-based organizations, schools, governments or combinations. A partnership is an arrangement where parties, known as partners, agree to cooperate to advance their mutual interests. Organizations may partner to increase the likelihood of each achieving their mission and to amplify their reach. A partnership may result in issuing and holding equity or may be only governed by a contract.
Types of Partnerships
Before you start a partnership, you will need to decide what type of partnership you want.
A general partnership is composed of partners who participate in the day-to-day operations of the partnership are who have liability as owners for debts and lawsuits. There may also be limited partners
A limited partnership has one general partner who manages the business and one or more limited partners who don’t participate in the operations of the partnership and who don’t have liability.
A limited liability partnership is similar to the limited partnership, but it may have several general partners.
Documents Required for Partnership Registration
• Form No. 1 (Application for registration under Partnership Act)
• Original copy of Partnership Deed, signed by all partners
• Affidavit declaring intention to become partner• Rental or lease agreement of the property/campus on which the business is set
Q. Is a partnership firm a separate entity?
The partners in a partnership firm are the owners, and thus, are not separate entity from the firm. Any legal issues or debt incurred by the firm is the responsibility of its owners, the partners.
Q.How many partners can there be?
A partnership must have at least two partners. A partnership firm in the banking business can have up to 10 partners, while those engaged in any other business can have 20 partners. These partners can divide profits and losses equally or unequally.