Minimum 2 people can start a partnership firm, the process is very easy and simple and Partnership Act, 1932 governs partnership firms. Its registration is optional in some states of India, where some states require registration of Partnership Firm. It can be incorporated by a Partnership Deed. There are many benefits of the Partnership firm.

Easy Formation

It was very easy to form any partnership firm. It is not necessary to get the firm registered.

Sharing of Risk

One of the most significant advantages of the partnership firm is that the risk gets equalized in all the partners. As there are multiple partners in a partnership, so the risk gets balanced.

No Statutory Audit

One of the significant advantages of a Partnership firm is, there is no requirement of Statutory Audit.

Can File a Case Against The 3rd Party

A Partnership firm can bring third parties to the court for resolution of disputes arose during business and in fact of any other matter relating to the partnership firm. An unregistered Partnership firm loses the right file the case against the third party for resolution of their disputes until and unless the procedure of Deed Registration has been completed.