All you have to do is to enter into an agreement with the other partners, agreeing on the terms on which the business will be handled and managed by the partners.

But before you go for the agreement there are few things every partner must keep in his/her mind.

Things to Consider When Entering Into A Business Partnership

1). Compatibility Check

Just like choosing a life partner, you do several compatibility checks before you enter into a marriage or engagement you must think several times about if that other partner/s is/are compatible with you.

Since once you enter the agreement you will be working together and if you guys do not understand each other well then the Business is gonna suffer for sure.

2). Partners must be complimentary to each other

It is important in a Business Partnership that the things that you can’t do well for a business your partner/s must be able to fill up that skill gap well.

Every partner need to be master in their own field, and all of them must be taking care of their own work departments. This will make them mutually exclusive at their work and thus will make each of them more valuable asset for their firm.

Since they will not be putting their nose in other’s work, partnership will go well and each of them will be able to grow their own departments well working together progressively

3). Common Long Term Goals

Before you enter into a Business Partnership you must enquire with the other partners about their long term life goals. It is important to have common long term goals, since your company’s future will depend upon it.

If for example one of your partner is not seeing himself/herself doing business anymore in after 5 years or say after 10 years then this is going to be tough for you to be with him/her in a same business.

4). Seriousness about the Business idea

Before Entering the agreement, whether it’s you or any of your partner.. if any one of them doesn’t have faith in the Business Idea, then he/she must not enter into the Business Agreement.

Company once formed and start running, your employees will be dependent on you and thus you have to be damn serious about your business, and should take the steps wisely.

5). Fair Share in the Business

If you are entering into a Business Partnership, it’s important that each of the partner must invest (in terms of money and hard work) in equal proportion and not just 1 or 2 of the partners doing all the work.

And all of them must get a fair share in the business’ profits/losses and not just 1 or 2 of them are taking the burden of others for some reason.

• Also Read How to Become a Business Partner in an Existing Business in India

From my past business formation ( both successful and unsuccessful Business partnership attempts) experiences, aforesaid points were the things I learnt from those experiences and I truly believe each of you reading this article should seriously consider them before entering into any Business Partnership.

Drop your comments in the comment box. Wish you good luck for your business.. do not forget to ‘SHARE‘.

The post Things to Consider When Entering Into A Business Partnership appeared first on Paraamarsh Business Blog.

If you have recently planned to enter into a partnership with an existing firm, then you and that firm will be writing a new partnership deed on new profit/loss sharing terms.

• Also read Things to Consider When Entering Into A Business Partnership

How to Become a Business Partner in an Existing Business in India

For becoming a business partner in an existing firm, Section 31 of the Indian Partnership Act, 1932, says that you need the consent of all the existing partners of the firm to be ready to add you as a new partner.

And for adding a new partner the whole business terms will have to be re-written on the partnership agreement you will be signing with them.

Introduction of a New Partner

At the time of execution of the “process of introduction of new partner “, all the present partners along with the new partner (to be introduced) must be present with the witnesses.

All the partners must provide the original copy of their PAN (Permanent Account Number) Card along with the copy of residence proof.

The date on which the new partnership deed is executed, the previous partnership deed shall stand superseded.

The person introduced in the firm does not hold the liability of any previous acts of the firm, before the introduction of the new partner.

Note that the aforementioned procedure is the broad overview of the procedure and you must consult a lawyer or a CA/CS for taking valid advice regarding the subject, this article is based on the actual research I did during the formation of one of businesses.

You can drop your queries in the comment box, and we’ll try to bring in new articles written by the CA itelf related to the company startups, etc; so that you can ask them more queries in detail. Keep reading and keep sharing.

The post How to Become a Business Partner in an Existing Business in India appeared first on Paraamarsh Business Blog.