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Partnership Firm Registration India
Partnership firm is now a days becoming very popular because of its various advantages. Partnership firm, like company, is not a legal entity. As per section 4 of Indian Partnership Act, 1932, '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. Under partnership law, a partnership firm is not a legal entity, but only consists of individual partners for the time being. It is not a distinct legal entity apart from the partners constituting it - Malabar Fisheries Co. v. CIT (1979) 120 ITR 49 = 2 Taxman 409 (SC).
Partnership firm registration in India can be done orally or in written but it is mandatory that all the essentials of valid contract must be present. Apart from all this "Partnership Deed" is an important supportive document. At the time of partnership registration in India, partnership deed is needs to be register.
Business Query Form
Partnership Deed contains
- Name of the parties
- Nature of business
- Duration of partnership
- Name of the firm
- Share of partners in profits and losses
- Books of account
- Powers of partners
- Retirement and expulsion of partners
- Death of the Partner
- Dissolution of firm
- Settlement of disputes
Although it is not mandatory to register partnership but it is always advisable to register partnership. Registration of partnership in India or in any country gives a legal support which is useful at the time of any conflict between the partners. If firm is not registered then partners will find it difficult to file any case against the partner who is responsible for any misconduct or cheating. They can't make any claim in the court. Partnership deed will provide them legal support therefore it is required to be registered.