Firm registration Calicut

What is a Partnership Organisation?

Any business model which is operated by 2 or more persons to achieve their targeted goal, then they are said to be as a Partnership firm registration Kerala. While most of the small sector companies have these kinds of organizational structures. 

Why is it necessary to have a Partnership firm Registration Calicut?

A proper firm name should be agreed before establishing a partnership deed on a Partnership firm, you must agree on a firm name and then establish a partnership deed. This document mainly states the rights and obligations that each partner has to do and all these statements were in the written format and not in the oral form. All the terms in the partnership deeds can be customized and written according to the need of partners and can even be made contrary to the Indian Partnership Act, 1932 but if the Partnership Deed is silent on any point, then the provisions of the Act would apply.

How the Partnership Firm Registration Kerala is Segmented?

Partnership firms were segmented into 2 types, one is registered and the other one is non-registered. According to the partnership registration act, there are no penalties given for the non-registration of a partnership firm, and you can even register the partnership after the formation of the firm. 

But for these unregistered partnerships, there were certain rights denied according to Section 69 of the Partnership Act, they are

• No case can be filed between the partners
• No suit is enforced on the right arising from an agreement 
• The partners or an unregistered firm has no rights to claim a set-off or other proceedings in regards with a third party at the time of dispute.

Hence to avail many benefits and should be away for all these problems it is better to register your company (partnership registration).

Why is Partnership Registration required?

• The process is very easy.
• It is inexpensive when compared to all other formats
• It has minimal compliance requirements.
• Audit is not required

Steps involved in Partnership registration

According to Section 58 of the Indian Partnership Act, a partnership firm can be registered at any time, even after the formation of a firm. 

• Step 1: Registration process is carried out under the Registrar of the Firm
• Step 2: Once approved, then a record of the entry statement is made.
• Step 3: Partnership is registered and the certification is issued.

Pros and Cons of Partnership:

Even Though the partnership registration has many pros, it has some cons too….

Pros:

• In terms of compliance, they need minimal requirements
• No need to file any annual returns
• Financial statements are not available publicly
• No need to audit the firm

Cons of a Partnership Firm:

• Partnership firms do not have perpetual existence at will not provide any limited liability protection to its partners
• The interest of a Partner is not easily transferable 
• The ownership structure of the ownership does not allow for investment from Venture Capitalists or Private Equity Firms
• They might have problems for raising funds in banks or private organization