A Partnership is an association of two or more people to achieve certain common goals, pool money, skills, and other resources, and share profit and loss in accordance with terms of the partnership agreement. In absence of such agreement, a partnership is assumed to exit where the participants in an enterprise agree to share the associated risks and rewards proportionately.
The Partnership is relatively easy to start however, there are certain conditions and restrictions to be followed in setting them up. Also, according to Indian Partnership Act,1932, consent of all the partners in a partnership firm is required in fundamental matters (like admission of new partners, dissolution of the firm, conversion of the firm etc.) and a majority in other matters and there should be sharing of all the profits or losses made in the business. It also states that there has to be a legal contract that There are certainly more rules while setting up a Partnership firm, clearly stated in the Indian Partnership act,1932 and they should be followed strictly to avoid any severe actions made by authorities towards your firm.Partnerships are easy to form and can be of two types- registered and unregistered Partnership Firms. It is not compulsory to register a Partnership but however it is recommended to register it due to its added advantage. FincomIndia will help you form a Partnership Firm and register in 7-10 working Days. Fincomindia.com Experts will help you in determining the structure of your entity as per need and nature of your business.