A Partnership Firm is a popular form of business constitution for businesses that are owned, managed and controlled by an Association of People for profit. Partnership firms are relatively easy to start are is prevalent amongst small and medium sized businesses in the unorganized sectors. With the introduction
of Limited Liability Partnerships in India, Partnership Firms are fast losing their prevalence due to the added advantages offered by a Limited Liability Partnership.

There are two types of Partnership firms, registered and un-registered Partnership firm. It is not compulsory to register a Partnership firm; however, it is advisable to register a Partnership firm due to the added advantages.

For Partnership Registration, you must agree on a firm name and then establish a partnership deed. It is a document stating respective rights and obligations of the partners and to be valid it should be written and not oral. The terms of the Partnership Deed can be varied to suit the interests of the partners and can even be made contrary to the Indian Partnership Act, 1932 but if the Partnership Deed is silent on any point, then the provisions of the Act would apply.

Choose Partnership because

1.  Partnership registration is very easy.
2.  Partnership registration is inexpensive as compared to LLP.
3.  It has minimum compliance requirement.

1. Statement in Form 1 with the prescribed fees
2. Noterised True copy of the Partnership Deed stating the following :
3. The firm-name
4. The nature of business of the firm
5. The place or principal place of business of the firm
6. The names of any other places where the firm carries on business
7. The date when each partner joined the firm

1. The names in full and permanent addresses of the partners
2.  The duration of the firm
3.  Proof of ownership or rent/lease of the location of your business.(e.g. Electricity Bill/ Water Bill
   or Rent/Lease/Leave and Licence Agreement of Business Place)
4. Copy of PAN Card of partners
5.  Copy of Aadhaar Card/ Voter identity card

1. Easy to Start
Partnership firms are one of the easiest to start. The only requirement for starting a partnership firm in
most cases is a partnership deed. Hence, a partnership can be started on the same day. On the other
hand, an LLP registration would take about 5 to 10 working days, as the digital signatures, DIN, Name
Approval and Incorporation must be obtained from the MCA.

2. Decision Making
Decision making is the crux of any organization. Decision making in a partnership firm could be faster as
there is no concept of the passing of resolutions. The partners in a partnership firm enjoy a wide range of
powers and in most cases can undertake any transaction on behalf of the partnership firm without the
consent of other partners.

1. Raising of Funds
When compared to a proprietorship firm, a partnership firm can easily raise funds. Multiple partners
make for more feasible contribution among the partners. Moreover, banks also view a partnership more
favourably while sanctioning credit facilities instead of a proprietorship firm.

2. Sense of Ownership
Every partner owns and manages the activities of their firm. Their tasks might be varied in nature but
people in a partnership firm are united for a common cause. Ownership creates a higher sense of
accountability, which paves the way for a diligent workforce.