To meet the day-to-day problems occurring in the partnership business in India, The Indian Partnership Act, 1932 was introduced. Partnerships in the State of Rajasthan are governed by the Rajasthan Partnership Rules, 2017 formulated under the said Act. Partnership is the relation between persons who have agreed to share the profits of a business carried out by all or any of them acting for all.
There are two types of partnership firms, registered or unregistered partnership firms. It is not compulsory to register a partnership firm; however, it is advisable to register a partnership firm due to added advantage like:
• A partnership is easy to form as no cumbersome legal formalities are involved.
• A partnership firm is not required to file its annual account with their Registrar each year unlike a Limited Liability Partnership or Company.
• Bank account can be opened in the name of a partnership firm.
• A partnership firm can be registered either at the time of its formation of even subsequently.
For registering partnership one needs to file an online application with the Registrar of Firms of area in which his/her business is located.