The easiest way to start a business with your partner is to open a partnership firm. This can be done by creating a document, that’s commonly referred to as the Partnership Deed of the business.
The advantage of starting a partnership firm is that it is a very quick process and the partnership deed can also be used to open a bank account in the name of your firm.
However, the only disadvantage is that the personal assets of the partners will also be held liable under the firm. Should the firm incur any losses or debts, the firm’s finances can be legally used along with each of the partner’s personal assets as well.
Steps to be Followed
Here are the steps that need to be followed to get your company registered as a Private Limited Entity:
1. Get the partnership deed drafted on a Stamp Paper.
2. Though this step is optional, the deed is registered with the State Registry.
3. The deed is formed and once signed by both the partners, the partnership firm is now valid and ready to function as a legal entity.
Personal Documents Required
The following documents of each director will be required:
1. Address Proof – Driving License or Voter ID will suffice
2. PAN Card
3. Passport Sized Photos
The above content must have given you some quick information about the process that is involved in the starting of a Partnership firm in India.
Our legal experts at EFuture will assist you through each and every step mentioned above, should you not understand any or do not have the required documents mentioned.
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