PARTNERSHIP FIRM REGISTRATION
A Partnership Firm is a traditional form of business structure for businesses that are owned, managed and controlled by an Association of People for profit. Partnership Firms are relatively easy to start and are is prevalent amongst small and medium sized businesses.
There are two types of Partnership Firms, registered and un-registered Partnership firm. The Registrar of Firms (RoF) has right to register partnership firm. In India it is mandatory in some states to register a Partnership firm with the Registrar of Firms, however; it is advisable to register a Partnership Firm due to the added advantages given to registered partnership Firms. Partnership Firms are created by drafting and executing a Partnership Deed amongst the Partners and registering the same with the Registrar of Firms. However, after introduction of Limited Liability Partnerships in India, Partnership Firms are fast losing their prevalence due to the added advantages offered by a Limited Liability Partnerships.
ADVANTAGES OF PARTNERSHIP REGISTRATION
1. Easy to Start: Formation of partnership firm is less time consuming. A Partnership Deed Execution will suffice the purpose to start the business operations with simultaneous registration of the firm if required to do so. However, if the firm is not registered, it will be deprived of certain legal benefits.
2. Business Name: Partners can decide any name as long as it does not infringe a registered trademark. However, since the name is not registered, any other person can also use the same business name unless trademark registration is obtained.
3. Annual Filing not required: A Partnership firm is not required to file its financial statements with the Registrar of Firms every year unlike a Limited Liability Partnership or Company.