image source : http://www.galloper.com.au/
Entrepreneurship is not a cake-walk; we have seldom heard of a one-man show to be successful. Most times a startup is a journey of a team. Mostly people start their venture with their friends or like-minded people and formation of a partnership begins.
We all are aware that there are mainly two types of firms running in India. One is proprietorship firm, while the other is partnership firm. As partnerships are very common, we will try to give you a brief picture about its structure, benefits and requirements. In India, partnership firms exists in two ways.
After obtaining PAN card, it simply means your firm has been incorporated and registered under income tax also. Yes, it is simple to create but this firm still does not have a legal existence. The main disadvantage of this type of firm is that there is a bar that unregistered firms cannot prosecute any person or a firm.
Second type of partnership is registered firm: The registration of firm can be done in two ways, by the firm registering itself with Registrar of firm along with the requisite fees, or register LLP under the Ministry of Corporate affairs.