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A Partnership Firm is a widely chosen form of business organization in India, wherein two or more individuals come together with a mutual objective to establish a business and distribute profits among themselves based on an agreed-upon ratio. In order to form a partnership, it is necessary for two or more individuals to join hands and consent to share both profits and losses in an equal or pre-determined ratio, which is documented in a Partnership Deed. The Partnership Deed serves as a contract that outlines the terms and conditions of the partnership. All types of partnership firms in India are governed by the Indian Partnership Act of 1932.
The registration process for a partnership firm involves steps such as choosing a unique name, preparing the necessary documents including the Partnership Deed, registering with the Registrar of Firms, obtaining PAN and TAN, and potentially registering for GST. Benefits of a partnership firm include easy establishment, faster decision-making, fundraising opportunities, availability of resources, flexibility, but also unlimited liability for partners. It is important to seek professional guidance to ensure compliance with applicable laws and regulations during the registration process.
Process:-
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