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General Partnership

Introduction

When two or more persons enter into a Partnership agreement, the entity which comes into existence is called Partnership Firm and the persons entering into Partnership are called Partners.

Partnership firm is owned, controlled and managed by Partners of the Partnership Firm. Starting a Partnership Firm is easier as compared to a Company or LLP. 

Partnership Firm can be simply created by entering into a Partnership Deed by the Partners of the firm. Its not compulsory to register a Partnership Firm. However it is always advisable to register a Partnership Firm as there are many benefits given to a registered Partnership over an unregistered Partnership Firm. 

On the other hand, the Partnership Firms does not have perpetual succession and this form of is generally prevalent in small and medium sized businesses or unorganized sectors. Since the introduction of concept of Limited Liability Partnership, more and more businesses are opting the LLP options than a Partnership Firm because of added advantages offered by LLP.

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Conversion of Company into LLP


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