Both registered and unregistered partnerships are legal entities and can carry out the business. However, the significant advantage that a registered partnership has over an unregistered one is the legal rights and protection the firm enjoys. The benefits of registering a partnership are listed below:

• The firm is not liable to be sued by persons outside it, and can plead a set-off.
• Partners can enforce their rights as per the Partnership Deed
• Partners can file suits against the firm or other partners
• Legal bearing on criminal cases
• The firm can file case against third parties

Three elements are necessary to form a partnership:

1. There must be an agreement between two or more persons.
2. The agreement must be to share the profits of the business.
3. All partners together, or anyone, on behalf of the others must carry on the business.

Partners must be major (above the age of 18), should be sane and should not be disqualified by law from entering into a contract.

The Partnership Act does not prohibit a non-citizen from joining an Indian partnership firm, subject to necessary clearances and permissions from satisfactory authorities in this regard.
However, it is mandatory for at least one partner to a be resident in India.
The term 'resident in India' means a person (Indian or not) who has stayed in India for a period of not less than one hundred and eighty two days during the immediately preceding one financial year.

Capital is the initial amount in cash or kind contributed by the partners to start the business. It is not necessary for each partner to contribute equally to the capital. Contribution is based on the agreement among the parties.

Yes. The Partnership deed is a compulsory document which establishes the objective of the business and also explains how the business is run. It is also recommended to get the Partnership deed printed on a Stamp paper and get it notarized.

A minor admitted to the benefits of partnership, has the option to become a partner within six months of attaining majority. He has to give a public notice stating his acceptance or rejection of partnership. In the absence of a notice, it is considered that he has become a partner of the firm.

The following are the rights of a partner:

1. To take part in the business
2. To share the profit or loss of the business
3. To inspect and make copies of the books of the firm.
4. To receive remuneration for taking part in the business if specified in the partnership deed
5. To receive interest on capital if specified in the partnership deed.

Your duties as a partner are to:

1. Carry on the business.
2. Be just and faithful to each partner
3. Disclose true accounts of the firm
4. Furnish full information of all things affecting the firm.

As a partner you cannot do the following without the consent of the other partners: 1. Submit a dispute relating to the business to arbitration.
2. Open a bank account on behalf of the firm in your own name.
3. Compromise or relinquish any claim or portion of a claim of the firm.
4. Withdraw a suit or proceeding filed on behalf of the firm.
5. Enter into partnership with an outsider on behalf of the firm.
6. Acquire or transfer immovable property belonging to the firm.
7. Admit any liability in a suit or proceeding against the firm.

If a partnership deed does not provide for duration or for dissolving the partnership in any manner, it is a Partnership at will.

A partnership firm is free to register and operate with any name, as long as there is not trademark infringement involved. However, partnership registration in itself does not protect you from anyone else using your name. It is advisable to trademark the brand name to ensure intellectual property protection.

A partner can nominate a successor to take his place in the event of death or retirement of the partner. The mode of introducing a new partner or successor is based on provisions in the partnership deed. A new partnership deed is required once the new partner is admitted into the firm.