Partnership Firm :

A partnership firm is an entity which is formed with two or more persons to run a venture with a view to earn profit. Each member of such a group is known as partner. It is not mandatory to register a partnership firm with register of firms (ROF), however it is advisable to register as there are many advantages. These firms are governed by the Indian Partnership Act, 1932.

Registered Partnership firm is always supported by partnership deed which is duly notarized along with required forms by register of firms (ROF).

In case of Un registered Partnership firm, there is only partnership deed.

Benefits of Partnership Firm

• It can be registered very easily as it does not have major legal compliances like approval of Name , digital signature etc which required by LLP and Company
• It takes only 3-4 days for drafting and applying PAN and TAN so it is formed in timely manner.
• It does not have annual filing like LLP and Company. There are huge penalty under MCA for non filing of annual returns of LLP and Company.
• It involves minimum cost for formation/registration of partnership firm compare to LLP and Company.