General Partnership

A business owned and run by the partnership of two or more individuals is a General Partnership. In this type of business structure, there is a Partnership Deed, which underlines the terms and objectives of the business. This type of business is gaining popularity in recent times because of its ease of set up and comparatively lower set-up costs. Registration is not mandatory for this type of business structure. The profits and liabilities of the business are shared by individual partners in a decided ratio. General Partnership has unlimited liability.

In a General Partnership, there is a minimum of two partners. A banking business partnership can have a maximum of 10 partners, and other business partnerships can have a maximum of 20 partners.

Many small businesses opt for General Partnership since it is inexpensive and easy to set up. However larger businesses usually opt for Limited Liability Partnership (LLP).

Advantages of a Sole Proprietorship

• Ease of setup
• Comparatively inexpensive as compared to LLP setup
• Minimal compliance requirements; no appointment of auditor is needed, very few annual compliances, income tax filing not required

Registration is Not Mandatory

A partnership firm can be unregistered or registered. However, a registered partnership firm has the following advantages:

• filing case in the court against the co-partners
• filing case in the court against another firm
• filing case in the court against third parties
• claiming set-off
• conversion to any other entity such as LLP or Private Limited

Contents of the Partnership Deed

• Names and addresses of the partners
• Date of commencement of operation
• Investment of capital by each partner
• The partnership type
• The share of profits
• Various Rules and Regulations

The Way we Help

• We shall understand all the requirements from you after receiving your request.
• We will let you know if further details are needed.
• We shall appoint a lawyer to work on your request.
• We shall let you review the results.
• In case you want to make any changes after review, our lawyer will do the same.