PARTNERSHIP
In India the partnership firma is regulated by the Indian Partnership Act, 1932.
"Partnership" is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.
Persons who have entered into partnership with one another are called individually, "partners" and collectively "a firm", and the name under which their business is carried on is called the "firm-name".
The partners age should be > 18. Any minor may be a partner of a partnership firm but he shall share the profit but shall not be responsible to loss.
The partnership firm is not a juristic personality in the eye of law hence it cannot possess property in its name. It has not separate legal entity besides it’s members.
Partnership is a contract between more than one person. The Indian Partnership Act has not say about maximum numbers of members but other statute as per Companies Act, A partnership firm of more than 10 persons for Banking business and more than 20 persons for any other business would be considered as illegal.
A partnership firm, since it is not recognized as a legal person having a separate legal entity from that of its partners cannot enter into contract of partnership with another partnership firm or individuals.
The Act no where says that that a partnership deed must be registered rather the Partnership Act indicates only effect on non registration of the partnership deed as below:-
- No suit to enforce a right arising from a contract or conferred by this Act shall be instituted in any Court by or on a behalf of any persons suing as a partner in a firm against the firm or any person alleged to be or to have been a partner in the firm unless the firm is registered and the person suing is or has been shown in the Register of Firms as a partner in the firm :
Provided that the requirement of registration of firm under this sub-section shall not apply to the suits or proceedings instituted by the heirs or legal representatives of the deceased partner of a firm for accounts of the firm or to realise the property of the firm.
- No suit to enforce a right arising from a contract shall be instituted in any court by or on behalf of a firm against any third party unless the firm is registered and the persons suing are or have been shown in the Register of Firms as partners in the firm.
Documents required
- Pan of partners
- Coloured photo of partners
- Identity proof of partners (Voter Id/ Aadhar/Driving License/Passport)
- Residential Proof of partners (Utility Bill as Telephone/Electricity Bill/Gass Bill /Bank Statement)