Partnership Firm

Brief Introduction

  • Partnership Firm is a small business entity having more than one owner
  • Minimum 2 partners are required to form a Partnership Firm
  • Partnership Firm is a Separate Legal Entity means an ‘Artificial Judicial Person’
  • After the introduction of the LLP’s concept in India, the states ‘Partnership Firm’ becomes old and gradually evaporates.
  • Partnership Firm can be registered or unregistered. Registration is with RoF but not compulsory

Benefits of a Partnership Firm

  • It is a Separate Legal Entity and enjoys wide legal capacity
  • It can own a property, incur debts, raise funds, etc…
  • It is one of the easiest form of business to incorporate and manage.
  • No Statutory Audit Report of accounts is required to be submitted with RoC
  • There is no limitation on number of statutory meetings of the partners during the year
  • There is no requirement of filing annual return with RoC unlike LLPs