Q. Who can be a partner ?
Any person who is major (i.e. Aged 18+), a person of sound mind and a person not being barred by law to entered into agreement; can enter as a partner. It generally includes individuals, corporations, other partnerships and business associations.
Q. How will decisions be made under partnership ?
Decisions under partnership are governed by partnership deed where day to day business and special business decision rights are allocated. Where nothing is stated then decisions will be taken considering majority votes.
Q. When any partner withdraws, how will the pay off price be determined and paid?
It will also be governed by agreed clauses of partnership deed. In case nothing is mentioned then it can be referred to neutral third party to determine valuation of the partnership and partners may agree to pay it in lump sum or in installments considering adverse impact on continuing business.
Q. Am I responsible for actions of other partners ?
Individual partners bear responsibility for the actions of all other partners. Liability under partnership is joint & several.
Q. What are steps in Partnership Firm Formation ?
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Preparation and Execution of Partnership Deed
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Payment of Stamp Duty and Notary
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Registration of Partnership Firm with Registrar of Firms
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Application for PAN
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Opening Bank Account