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The partnership firm is a very reasonable alternative to sole proprietorship that allows better access to funds, resources, and manpower efficiently. The partnership is governed by a partnership deed agreement that has to be amended or updated with every change or major event that takes place during the life of the partnership. It may be a change in the distribution of profits or change in capital contribution or addition of new partners or transfer of ownership within partners, death of a partner, etc. All these scenarios need an amendment in the partnership deed to proceed further. Regulations for a Partnership Firm Even though the partnership in itself isn’t a legal entity as all the income earned by the partnership is taxed at the individual level, there can be various regulations under which the partnership has to function. Some of these can be termed as Annual Compliances for Partnership Firm as well. These can be listed as follows:- • GST Returns The partnership fir

In India, the two most popular and common form of performing business is through a partnership or a proprietorship firm. The Proprietorship Compliance in India is the simplest form of performing business with minimum paperwork and is perfect for businesses that are in initial stages or need less capital. On the other Partnership Firm Compliance is slightly advanced but has a host of benefits on offer compared to proprietorship, which is worth the little extra effort of setting up the partnership. Key Benefits of a Partnership Firm over a Proprietorship • More people mean more capital to function. 2 or more people may fund more money than a single individual. • Allows for pooling resources of different individuals with respect to cash, assets, knowledge, labor, etc. • The income from the partnership is directly reported on the personal income tax return and does not require a host of compliance at the partnership level. • Risk and profits are diversified. One individual