Partnership

Partnership is a business where two or more person carry on in an agreed manner. There is a partnership agreement that decides the rules and guidelines of partnership in respect of sharing profit and losses, asset sharing, capital sharing, adding new partner and many more. Each partner has share in profit and loss that makes them liable towards property, labor, skill, money and many more. As partnership is among two or more persons that brings diversity in experience to the business; thus, it is quite important to decide all the points in advance under a partnership agreement.

Partnership agreement is a legal document that comprises of rules as per which the partners carry on with their partnership. It includes the following steps :

Name of Partnership
Contribution of the Partnership
Compensation
How future business decision are made
Management duties

There are basically three type of partnership that one can form while setting up a business partnership.

General Partnership: It is a most common form of partnership where the percentage of sharing of profit and loss and other obligations have been defined in agreement in advance.
Limited Partnership: Here the obligations of partners towards the partnership is limited as depend upon the ratio of their investment to the business. This form of partnership usually followed for short term projects.
Joint Venture is another form of partnership which is usually followed for specific period of time. This partnership can be held under ongoing partnership if partners continue to venture but that must be file.

You can call at +91-8800-100-284 or mail at contact@company-registration.in to get complete services in set up a business partnership and how to form partnership agreement and related concepts.

Set up a Business Partnership in India

To form a partnership in India; first you need to register your business under registrar of company of the same state where your head office (or Registered Office) is situated. You need to get approval of business name as you have mentioned in partnership agreement. This partnership deed needs to be stamped and registered under the Indian partnership Act 1932. After forming a partnership; be sure to file for obtaining tax ID number under IRS and need to file taxes such as annual return of income, employment taxes and excise taxes all these legal taxes will help to define the concern authority about the business's income, losses, deductions and gains from different segments; where as partners in respective partnership entitles to file with income tax, estimated tax and self employment tax.