Key Features of Partnership Firm Registration:

1. Partnership Agreement: The registration typically involves creating a partnership deed, which outlines the terms of the partnership, including profit-sharing ratios, responsibilities, and roles of each partner.

2. Number of Partners: A partnership can have a minimum of two partners and a maximum of 20 (or 10 for banking businesses) in most jurisdictions.

3. Limited Liability: In a traditional partnership, partners share unlimited liability, meaning personal assets can be at risk if the business incurs debts. However, limited liability partnerships (LLPs) offer limited liability protection.

4. Taxation: Partnerships are generally taxed as pass-through entities, meaning profits are taxed at the individual partners’ tax rates rather than at the entity level.

5. Easy Formation: The registration process is relatively simple and involves fewer formalities compared to other business structures like corporations.

Registration Process:

1. Partnership Deed: Drafting a partnership deed that outlines the terms and conditions of the partnership.
2. Documents Preparation: Gathering necessary documents, such as identity proof of partners and business premises proof.
3. Filing with Authorities: Submitting the partnership deed and required documents to the relevant regulatory authority (e.g., the Registrar of Firms).
4. Certificate of Registration: Upon approval, receiving a certificate that confirms the partnership’s legal existence.

Registering a partnership firm helps in establishing credibility, allows for easier opening of bank accounts, and can facilitate the securing of loans and contracts.