How to register a partnership
For entrepreneurs, going into a partnership takes the loneliness
out of starting a new business and gives you someone to bounce your
ideas off, as well as emotional support when things aren't going
smoothly.
- Types of partner
- Registering a partnership
- Deeds of partnership
Types of partner
While generally, all the partners will take part in the
day-to-day running of the business and get an equal share of its
profits, there are two other types of partner. Sleeping, or dormant
partners invest money but don't help to run the business - even
though they are still liable for its debts. Companies can also be
partners in a business, with the same responsibilities but
different obligations when it comes to tax.
- General partners take equal part in running the business
- Dormant partners invest, but don't help to run the
business
- Other businesses can be partners, but will have extra
obligations
Registering a partnership
To register a partnership, you will need to fill in a Memorandum
and Articles of Association which you can obtain from a law
stationers or a company formation agent. You can then register a
partnership either by
downloading or sending off for the relevant forms from
Companies House, or by seeking advice from a solicitor, accountant
or formation company. In the case of partnerships, seeking legal
advice is wise.
- Obtain a Memorandum and Articles of Association from a law
stationer or company formation agent
- You can register by
downloading or sending off for the relevant forms
- Seek guidance from a solicitor or accountant
Deeds of partnership
When you are starting a partnership, it's important to draw up a
contract which outlines who is liable for what, should the business
go under, and what steps the business will take if one partner
wants to leave. It is highly advisable to seek guidance from a
solicitor, who will be able to make sure the contract is water
tight.
- Set out how much each partner is liable for
- Outline the steps the business will take if one partner wishes
to leave
- Seek guidance from a solicitor
You can set up a partership with Smarta - we offer a company
registration service powered by the National Business
Register. You can search for available names then register a
business name, or set up a company and/or register a trademark with
us. You will receive a professional binder with all your official
documents via post within 3 days.
Go to our company registration tool here: Company registration tool
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