Partnership Company Registration

According to section 4 of the Partnership Act of 1932, "Partnership is defined as the relation between two or more persons who have agreed to share the profits of a business run by all or any one of them acting for all". A partnership firm is not a legal entity.

Businesses as partnerships do not have to pay income tax; each partner files the profits or losses of the business on his or her own personal income tax return. This way the business does not get taxed separately. Easy to establish.

There are two forms of partnerships, general partnerships and limited partnerships. There are three essential elements to a general partnership:

In a limited partnership there is one general partner and one or more limited partners. The general partner assumes the responsibility for the management of the business and the limited partner contributes only assets to the business, while having no role in the company’s management.

Advantages of a General Partnership
Advantages of a Limited Partnership