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Step 3 B:- Partnership

The partnership is one of the oldest forms of business format, where two or more people can come together to run a business & share profit or loss from that business. In other words this friend in Business.

Partnership

Joint Venture:- Joint venture is same as a partnership only difference it is formed for a short period or to complete a particular venture and on completion of the period or venture it automatically dissolved or may continue as provided in terms of Partnership Deed
Partnership

Benefits

You know two is always better than one and 1+1 happens to be 11, Apart from sharing their respective expertise
partners can arrange the initial capital and can also share the responsibility hence make it really easy to tackle
the initial hiccups.

Issue in partnership

The most important issue in partnership is a misunderstanding. Misunderstanding can be due to responsibilities
Profit Sharing or due to mutual mistake.
The solution for the issue is to put every terms & condition in writing, In form of a deed which is generally known as
Partnership deed.

Procedure to form a partnership

1. Drafting of the Partnership agreement
2. Acceptance & signature of a partnership agreement
3.Registration of partnership deed
4.Application for PAN card for Partnership
5. The opening of Bank Account
6. Application for other required documents

Importance of Partnership Deed

Partnership deed is actually the return agreement regarding terms and conditions on which you run partnership.
Now most of the people ask us we are good friends or we are relative, We know each other why all this legal formality

The answer is simple till the time everything is going good no law is required, Issue arises when things turn bad. In partnership, the mutual trust and understanding are utmost important however these can change over time.
The only thing which will not change is legal written documents, Partnership need to turn out to be a life and relation saving when a friendship changes into enmity due to Money

Why did Professional Advise importantly?

Partnership deed contains many provisions related to admission of a partner, Profit sharing, Dissolution, Retirement which need to be drafted as per mutual understanding
It also needs to ensure that all partners get a fair deal according to their capital and effort contribution. Further provision should be there to minimize future disagreement between the partner by covering maximum possible provisions and resolutions in case of conflict of interest

               

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