What is Partnership Firm?
A partnership is a legal relationship between two or more individuals who have agreed to share the profits of a business. To form a partnership, there must be an agreement between the partners to share the profits obtained from the business, the business must be carried on by all or any of them representing the rest, and there must be an intention to carry on a business and to share the profits obtained from the same.
It’s important to note that a partnership can only arise from a contract and not from status. In addition, the sharing of benefits is the prima facie evidence of a partnership, which can be rebutted by stronger evidence.
There are two types of partnerships: partnership at will and particular partnership. A partnership by will is a partnership where there is no provision made by contract between the partners for the duration of their partnership or the determination of their partnership. A particular partnership is when a person becomes a partner with another individual in a particular business enterprise or for a particular business venture or undertaking, such as the construction of a road, laying a railway line, etc. This sort of partnership shall come to an end on the completion of the task for which it was initially formed.
Documents required?
- Pan Card
- Aadhar Card
- Rental Agreement