Easy to form: Like sole proprietorships, partnerships can be formed easily and without any prescribed legal formalities. There is no need to register the firm registered. A simple agreement or partnership deed, either oral or written, is sufficient to create a partnership. Note: Partnership registration is voluntary in most states. However, it would be best to check your state's rules to be sure.
Availability of large resources: since two or more partners join together to form a partnership business, it is possible to pool more resources than a sole proprietorship. Partners can contribute more capital, more effort, and more time to the business.
Better decisions: The partners own the business. Each of them has an equal right to participate in the management of the business. In case of any conflict, they can sit together to solve the problem. Since all the partners are involved in decision making process, there is less scope for rash and hasty decisions.
Flexibility in operation: a partnership firm is a flexible organization. The partners can decide to change the size or nature of the firm or the scope of its activities at any time. It is not necessary to follow any legal procedure. Only the consent of all the partners is required.
Sharing risks: In a partnership firm, all partners "share" the business risks. For example, if there are three partners and the firm makes a loss of Rs.12,000 in a particular period, then all the partners can share that loss and the individual exposure is only Rs.4000. This can encourage the partners to take more risks and thus grow their business.
Protection of interest of individual partners: In a partnership firm, each partner has an equal say in decision making and running the business. If a decision goes against a partner's interests, they can prevent that decision from being made. In extreme cases, a dissatisfied partner can withdraw from the firm and dissolve it. In such extreme cases, the "partnership agreement" is required. In the absence of the partnership agreement, there is no legal protection for the partners.
Advantages of specialization: since all partners own the business, they can actively participate in every aspect of the business according to their specialization, knowledge and experience. If you want to set up a firm to provide legal advice to people, then one partner can handle civil cases, one can handle criminal cases, another can handle employment cases and so on, depending on the individual specialization. Similarly, two or more doctors with different specializations can set up a clinic in partnership.
• Identity proof of each partner (any one)
o Aadhar card
o PAN Card
o Driving License
• Address proof of each partner
o Bank Statement
o Electricity bill
o Phone bill
o Water bill
• An address which will act as the registered address of the partnership firm.