Overview of General Partnership Firm Registration
A partnership, also known as a general partnership, is a business structure comprised of two or more owners who agree to share all profits, shares, and liabilities of the business. A general partnership is the easiest way to start a business with two or more people because there are fewer formalities than in other business structures.
The corporate entity is not separate from the partners in general partnerships, and the partners are responsible for each other's conduct. The personal assets of the partners are unprotected, and the partnership may be terminated if one of the partners dies or withdraws from the partnership.
When it comes to the structure of the general partnership, there are no restrictions as to who can become a partner in the business. There is also no legal minimum amount of share capital required to become a general partner.
Features of General Partnership Firm
Here are some of the salient features of General Partnership Firm;
A hybrid form of organisation
Have unlimited legal liability for the acts and obligations of the partnership. Their assets are subject to any legal claims made against the partnership.
For General Partnerships, the liabilities and profits are equal among all partners, regardless of perceived or actual individual contributions.
Each member contributes something of value. This could be anything of value: money, special skill, knowledge, property, labor, or any other asset or contribution.
Each member benefits from returns
All members receive a share of the profits.
Easy to start
General partnerships are the easiest and cheapest type of partnership to form. Nothing more than an agreement between the members is legally required to get started.
Each member is accountable for losses. All members share the responsibility of all debts and losses.
All members pay tax on their individual share of income. The business is not taxed.
Each member shares unlimited liability. Losses are not limited by individual ownership shares.
Benefits of General Partnership Registration
The key benefits of a Partnership Firm Registration are listed below:
Requirements for registering a General Partnership Firm in Nigeria
You'll have to provide the following details upon Submission;
- The name of the partnership - 2 business names (A name availability check will be conducted at the CAC and when one of the 2 proposed names is available, the name will be reserved).
- Details of at least 2 partners (Name, address, signature, passport, I.D, phone, email, etc).
- Description of business activity.
- Details of verifiable registered address and address of the head office (if different from registered address), company’s email, and phone number.
- Partnership Agreement (We can provide this).
Where the above requirements have been complied with, the CAC shall within 14 days of the submission of the application register the partnership and issue a digital certificate of incorporation stating the name, date, and registration number of the Business name.
Here are some of the features to expect from our General Partnership Registration package.
Why choose SplashDict?
Register on our platform in 5 minutes - we'll then prepare and file all the necessary documents.
100% digital processes - ensuring smooth delivery, from anywhere, anytime.
Founders can always rely on us to securely manage their confidential information—safe from any unauthorized and prying eyes.
No hidden fees, no bad surprises - helping you plan ahead.
Make Payment Online
Add the product to the cart below, then proceed to checkout and complete the secured online payment.
Tell us about your business
Come up with a name for your business and Answer a few questions. Our easy online form can be completed in just 5 minutes or less.
We'll process Application
Based on the information you provide, We will process and file the documents.
Receive your documents
Once your incorporation documents have been approved by the Federal Ministry, you will receive your completed business entity package by e-mail/mail.
Frequently Asked Questions (FAQs)
You can find some of our most frequently asked questions below;
An unincorporated business structure that two or more parties form and own together is called a partnership. These parties, called partners, may be individuals, corporations, other partnerships, or other legal entities.
Partners may contribute capital, labor, skills, and experience to the business. They may have unlimited legal liability for the actions of the partnership and its partners.
The most common type of partner is a general partner, who actively manages and exercises control over the business operations.
Limited partners have limited legal liability. This type of partner cannot manage or exercise control over the business.
Among the most common types of partnerships are general partnerships (GP), limited partnerships (LP), and limited liability partnerships (LLP).
A partnership can even start without an oral or written contract. Where there is a written contract between the partners, it is called a partnership agreement. The partners agree on the purpose of the partnership and their rights and responsibilities.
A partnership agreement is a mutual deal between all partners which decides the rights and duties of partners. In some firms, a partner can also modify the agreement if he wishes.
Every partner is jointly liable with all the other partners and also individually, for all acts/activities of the firm, during the course of business while he/she is a partner. This means that if a loss or injury is caused to any third party or a penalty is levied during the course of business all partners will be held liable even if the injury or loss was caused by one of the partners.
While partnerships are the easiest business entity to form, if your business has multiple partners, you may want to consider establishing a limited liability partnership (LLP).
An LLP is a good idea if the partners have careers like attorneys, accountants, or doctors and need protection from being held personally liable for another partner’s negative actions. For example, if one partner is sued for malpractice, the other partner(s) will not be held personally liable.
A good example of a General Partnership is a law firm. Each lawyer in the firm has value to contribute. While they have the ability to work independently, they each benefit from a larger market reach made available by the additional members' reputations and skills. They share the costs and profits from doing business, pay income taxes on their income, and have unlimited liability for the firm.
All individual members of a General Partnership agree on how the business is run and share responsibility for all aspects of the business. This means that all partners are responsible for the daily operations of the business in the capacity agreed upon.
It usually takes 3-14 business days for the General Partnership Firm Registration in Nigeria.
Name Search: 6 - 24 hours from submission.
Grant of Certificate of Registration: 2 - 10 Days from filing.
Total time: Approximately 3 - 14 days.
Learn More form our Blog
We've put together some articles that might interest you.