A Partnership is a business formation in which two or more individuals organise and run a business in accordance with the terms and object set out in the PartnershipDeed. Partnership registration is relatively simple and is prevalent among small and medium sized businesses in the unorganized sectors. Partnership Registration is done through Insidetax.

For Partnership Registration, you must admit for a firm name and then organise a partnership deed. It is a document stating respective principal and duty of the partners and to be valid it should be written and not oral. The terms of the Partnership Deed can be varied to suit the interests of the partners and can even be made contrary to the Indian Partnership Act, 1932 but if the Partnership Deed is silent on any point, then the provisions of the Act would request.

Adopt Partnership because:-

• Partnership registration is very simple
• Partnership registration is cheaper than LLP.
• It has a minimum compliance obligations.

Partnership is a association when two or more people decide to share the profits of a business carried on by them all or any of them acting for all.It’s normally done in valid terms. The percentage of ownership differ and depends on certain elements . Partnership firm thus is a firm which permit joint ownership of a business. There are certain rules and regulations that have to be followed while setting up a Partnership firm. Registering a partnership firm is not mandatry under the Indian Partnership Act, 1932 but only Maharashtra has made their registration mandatory . Further a partnership firm can be registered at any point of time i.e. even several years after organisation . Registering or not registering a partnership firm has its own authority but like a coin which has two faces, it definitely has its own disadvantages too. Report below in detail is how a partnership firm works and how can you register for partnership firm in India.

The partnership is comparatively simple to begin however, there are certain situations and limitations to be followed in setting them up. Also, according to the Indian Partnership Act,1932, consent of all the partners in a partnership firm is essential in fundamental matters (like an admission of new partners, dissolution of the firm, conversion of the firm, etc.) and a majority in other matters and there should be allocated 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.

Partner Cannot sue firm: A partner in an unregistered partnership firm cannot sue the firm for impose any legality under the Indian Partnership Act, 1932.
Cannot claim adornment in a argument with a third party.
The firm cannot sue third parties whereas the third parties would be capable to sue the firm discounting of registration.