Partnership Firm

The partners in a partnership may be individuals, businesses, interest-based organizations, schools, governments or combinations. Organizations may partner to increase the likelihood of each achieving their mission and to amplify their reach.

Many a time it is seen that family members like husband and wife, father and sons, brothers themselves, who know well their likes and dislikes, choices and aspirations, nature and risk appetite, form and manage a partnership business. Understanding the current of thought of the partners plays a key role behind every successful business. The moderate and big partnership business enjoys the benefit of some deduction as an expenditure, like remuneration paid and payable to working partners, the interest on the balance of capital of partners. The provisos regarding allowance of remuneration and interest as a business expenditure can be utilized towards excellent tax planning of the family as a whole, provided certain conditions are fulfilled in drafting the Partnership Agreement and certain management decisions are undertaken on the issue of undergoing audit in the case of the mid-sized firms with turnover up to 2 crore. The Liability of a partner is unlimited though .