Pros and Cons of Partnership Firm Registration

It is no news that the chance of you succeeding in your business venture will increase by ten-folds when you have someone to help you. Therefore, those who have a common goal to start an enterprise and earn profit form a partnership firm. However, like other business entities, a Partnership Firm Registration has advantages and disadvantages.

 If you want to succeed in business, you must first realize that you can't do it yourself. You require someone to stand by your side -- a person that can give weight to your business decisions; someone who has the expertise to row the boat of your business venture beside you. 

Therefore, you need to get a partnership registration. But what is a Partnership firm?

It is a business entity that doesn't require government oversight - an aspect that has advantages and disadvantages.

 Let us discuss them both.

Pros of Partnership Firm Registration

Let us begin with why you should set up your business as a partnership:

1. You have someone to help you: It is ambitious to run your own business on your own terms. However, when you have a singular approach to your operations, you lose the ability to diversify. You require another set of eyes - someone who can join their voice with yours as you take the business decisions. Starting your business like that gives you confidence. 
2. You can have additional knowledge: No enterprise in this world has earned success without more information. When you have a partner by your side, you gain more knowledge. You can leverage that understanding to take business decisions that will lead to sustainable success.
3. You will have less financial burden: Running the business yourself burdens you with its losses. However, sharing this cargo with another partner will boost your confidence. It will eventually lead to being less afraid of business risks. And when you take risky decisions, you might gain more rewards.
4. You will have to deal with less paperwork: You don't like paperwork? Then, registering a partnership is right up your alley. With this, you will spend more time focusing on your business and less on dealing with the compliances. 

However, all is not green when it comes to partnership registrations. There are some disadvantages of it too.

Cons of Registering a Partnership firm

Here are the cons of registering a partnership

1. There is no online process: No online procedure exists to set up a partnership firm in India. You must fill the application form by hand, go to the state department, and then submit it with the attachments. It increases the time of registration that, in turn, can delay your business operations.
2. Disagreements are a common occurrence: There is a reason why there are no favoured partnership firms in India. Even though there is partnership deed registration that establishes the role of partners, disagreements between them are common.
3. It is not a separate business entity: You register a partnership with full knowledge that you and the entity aren't different. Its loss would be your loss, and its profits would be yours as well. It creates a factor of unlimited liability - causing your assets to be at stake if your partnership firm suffers a loss.
4. Your partners will have to pay individual taxes: Because you are not a separate legal entity from your partnership, you'll have to bear the burden of individual taxes. It increases the taxes you must pay to the government.

Conclusion

A Partnership firm is a non-registered business entity with its pros and cons. What you want to focus on when you start your business depends on you. However, make sure that you keep both of them in mind so that your business turns out to be a successful one.