There must be an agreement entered into orally or in writing by the persons who desire to form a partnership,the object of the agreement must be to share the profits of business intended to be carried on by the partnership, and The business must be carried on by all the partners or by any of them acting for all of them. The term ‘person’ is not defined by the Partnership Act.

It is not compulsory to register your partnership firm as there are no penalties for non-registration. However, it is advisable since the following rights are denied to an unregistered firm:

A partner cannot file a suit in any court against the firm or other partners for the enforcement of any right arising from a contract or right conferred by the Partnership Act

A right arising from a contract cannot be enforced in any Court by or on behalf of your firm against any third party

Further, the firm or any of its partners cannot claim a set-off (i.e. mutual adjustment of debts owed by the disputant parties to one another) or other proceedings in a dispute with a third party.

PARTNERSHIP BUSINESS QUICK FACTS

LIABILITY

A partnership is considered as a separate legal identity (i.e. separate from its owners) in Bangladesh only if the partnership is registered. All the partners of a partnership are liable severally and jointly for the liability of the partnership. The concept of Limited Liability Partnership does not exist in Bangladesh.

TAXATION

From a tax perspective, partnerships in Bangladesh are not taxed at the entity level and profits are treated as part of each partners’ personal income and are taxed at personal income tax rates.

MEMBERS & MANAGEMENT

There must be a minimum of 2 partners and maximum of 20 partners. The partners can be natural persons or companies. Unlike private or public limited companies, a partnership in Bangladesh does not have directors, shareholder or secretary, instead the partners own and run the business.

STEP 1- CHOOSING THE PARTNERSHIP NAME

The partners are free to choose any name as they desire for their partnership firm subject to the following rules:-

1. The names must not be too identical or similar to the name of another existing firm doing similar business so as to lead to confusion. The reason for this rule being that the reputation or goodwill of a firm may be injured, if a new firm could adopt an allied name.

2. The name must not contain certain words expressing or implying the sanction, approval or patronage of Govt. Once you select a name, you should apply for name clearance using the website of RJSC.

STEP 2 – PREPARE A PARTNERSHIP BUSINESS DEED

You should prepare a partnership deed. Usually, a partnership deed contains the following clauses:

STEP 3- REGISTER PARTNERSHIP DEED WITH RJSC

The partnership deed and filled up Form I should be filed with RJSC. These documents will be reviewed by the officials of the RJSC. When the officials are satisfied with the points stated in the partnership deed, he shall record an entry of the statement in a register called the Register of Firms and issue a Certificate of Registration.

Various types of business exist in Bangladesh. One of them is Partnership Firm and others are Proprietorship and Limited Company. A Partnership Firm is formed under the provision of the Partnership Act 1932. RJSC (The Registrar of Joint Stock Companies and Firms) is the sole authority to Register Partnership Firm in Bangladesh. For Partnership Registration in Bangladesh we should follow some steps those will discuss at the end of this article.

Especially similar minded or similar professionals two or more people when a business start and create a voluntary agreement with the intention of making and sharing profit among themselves that is called Partnership Business. For form a Partnership Business minimum two and maximum twenty people can include.

Now days for opening Bank Account for Partnership Business, Partnership Registration from RJSC is essential. For this many of the unregistered Partnership Business owner going to register their Partnership Firm from RJSC. On the other hand to get some legal facilities Partnership Business Registration from RJSC is mandatory.