- 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