Partnerships are often opted by start-ups when an association of people decides to come together to own, manage and control a business for profit. Partnership firms are comparatively easy to incorporate which is a predominant choice amongst small and medium sized firms in the unorganized sectors. However, the introduction of Limited Liability Partnerships in India, Partnership firms are losing out on their popularity.
There are essentially 2 types of Partnership firms:-
- Registered and Partnership firm.
- Un-registered Partnership firm.
It is not really compulsory but a smart choice to register a Partnership firm to reap the benefits from the added advantages.