A Partnership Firm is a business structure where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Deed. In India, registration under the Indian Partnership Act, 1932, is not mandatory but highly recommended. Unregistered firms cannot sue third parties or partners in court to enforce contractual rights.

The Partnership Deed is a legal document that serves as the “constitution” of the firm. It outlines the profit-sharing ratio, capital contribution of each partner, roles and responsibilities, dispute resolution methods, and rules for the admission or retirement of partners. A well-drafted deed by AccountSewa prevents future legal conflicts.

minor cannot be a full partner because they cannot legally enter into a contract. However, with the consent of all existing partners, a minor can be admitted to the benefits of the partnership. This means they share in the profits but are not personally liable for the firm’s losses beyond their share in the business.

Yes. As your business grows, you can convert your Partnership Firm into a Limited Liability Partnership (LLP) or a Private Limited Company. This process involves transferring assets and liabilities and registering the new entity with the Ministry of Corporate Affairs (MCA). We specialize in these conversions to help you gain limited liability protection.

The process is straightforward:

1. Drafting: We draft a customized Partnership Deed based on your specific business needs.

2. Execution: Partners sign the deed on non-judicial stamp paper.

3. Filing: We submit the deed and required forms to the Registrar of Firms in your state.

4. Certification: Once the Registrar verifies the documents, they issue the Certificate of Registration.