All about Partnership Firm
Partnership is most commonly used form of business structure. In India Partnership are governed by the Indian Partnership Act, 1932. As per Section 4 of the Indian Partnership Act:-
“Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all”.
Some commonly used terms are
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Documents requirement for partnership firm
Advantage of forming Partnership firm
Disadvantages of forming Partnership firm
• One or more Partners can be designated to manage the Partnership Firm
|Private Limited Company||One Person Company||Limited Liability Partnership||Partnership Firm||Proprietorship Firm|
|Act||Companies Act, 2013||Companies Act, 2013||Limited Liability Partnership Act, 2008||Indian Partnership Act, 1932||No specified Act|
|Number of members||2 – 200||Only 1||2 – Unlimited||2 – 50||Only 1|
|Number of Director/Partner||2 – 15||Only 1||2 – Unlimited||2 – Unlimited||Only 1|
|Separate Legal Entity||Yes||Yes||Yes||No||No|
|Statutory Audit||Mandatory||Mandatory||Dependent||Not mandatory||Not mandatory|
|Ownership Transfer ability||Yes||No||Yes||No||No|
|Foreign Participation||Allowed||Not Allowed||Allowed||Not Allowed||Not Allowed|