InvestorQ : What are the pros and cons of going for a partnership structure for my start up business? Would you recommend that?
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What are the pros and cons of going for a partnership structure for my start up business? Would you recommend that?

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Anamika Sodhani answered.
12 months ago
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The partnership model is also quite popular and here is what you need to know. When family members or friends (with a high degree of mutual trust) get together, the easiest way to go ahead is to create a partnership firm. All you need is a partnership deed which is an agreement between the partners. This agreement will clearly outline the duties and obligations between the partners and how profit will be shared. Partnership deed must contain the Name and address of all partners, Name and address of the partnership firm, Starting date of the firm, Capital each partner has invested, Profit sharing ratio among partners, Salaries/commissions to be paid to partners, Rights of each partner, Duties and obligations of each partner etc. This firm must be registered under the Indian Partnership Act, 1932 but such registration is not mandatory and it is at the discretion of the partners. Compliance wise, there is no need to submit annual returns to the MCA and Statuary Audit is not mandatory.

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