Description
How to register a Partnership firm in India?
Partnership firm registration is required when two or more parties sign a formal agreement to manage and operate a business and share both the profits and losses.
Registering a Partnership is the correct choice for small enterprises as the formation is simple and there are minimal regulatory compliances.
The Partnership Act has been in existence in India since 1932, making partnerships one of the oldest types of business entities in India. A partnership firm can even be registered after it is formed. There are certain penalties for non-registration of a Partnership firm. Unregistered Partnership firms are denied certain rights under section 69 of the Partnership Act that majorly deals with the effects of non- registration of Partnership firms.
What documents are required to register a Partnership Firm in India?
The application for the Partnership registration form must include the prescribed documents like the Identity proof, address proof, a real copy of the Partnership deed entered into and the Marathi translated deed if registering in Maharashtra and the proof of the Principal place of business.
Any of the following documents can be submitted as identity proof and address proofs.
- PAN card
- Passport
- Driver License
- Aadhar Card
- Voter ID
Proof of Business premise can be established by submitting the following documents:
- Sale Deed in case if the Partner owns the place
- Rental agreement copy if the office is on rental basis
- Copy of the latest electricity bill or the tax bill receipt
How to register Partnership Firms in India?
- At first, an expert from our team at Taxology will brief you about the process and provide you the list of necessary documents required for Registration
- The submission of the documents can be done online through our website or the same can be shared via email or whatsapp on our registered number.
- Once the verification of the documents is done a Partnership Deed is drafted and sent to the partners for obtaining the signature
- It is to be noted that all partners must sign the documents on stamp paper, and a copy of the same should be uploaded on our platforms.
- Once the signed Partnership Deed is available, it is registered with the concerned Registrar of firms, and a certificate of Registration is provided to the Partner.
- Along with providing the Certificate of Registration of the Partnership firm, we also help you to obtain a PAN card & GST registration in the name of the Partnership firm.
Types of Partnership firm
Depending on the extent of the liability while Partnership firm registration, we can derive the different classes of partners.
Partnership Firms can be classified into two types registered and unregistered Partnership firms. The Indian Partnership Act states that the only criterion to commence the business as a Partnership firm is a finalization and the partnership deed’s execution between the Partners.
Under this act, the Partnership firms don’t need to be registered. As an outcome of this lot of partnership businesses exist as unregistered partnership firms.
There are certain penalties for the nonregistration of the partnership firms. Also, a partnership firm can be registered even after formation. But the unregistered partnership firms have been denied certain rights in Section 69 of the Partnership Act, which deals majorly with the effects of the non-registration of the partnership firm.
Here are the reasons why an individual should opt for a registered partnership firm:
A registered firm partner cannot file 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.
No suit to enforce a right arising from an agreement can be instituted in any court by or on behalf of a firm against any third party unless the firm is registered under the Partnership Act.
An unregistered firm or any of its partners cannot claim set-off or other proceedings in a dispute with a third party.
Therefore, it is better to register a Partnership sooner rather than later.
What are the advantages of Partnership firm Registration?
1- Easy to start
2- Decision making
3- Raising of Funds
4- Sense of Ownership
As every Partner is the owner, the partners have the liberty to manage and control the firm’s activities. The tasks might be varied, but people in a Partnership firm are together for a common cause.
Ownership creates a higher sense of accountability and belongingness, which helps in creating a diligent workforce.
How will Taxology help you in Partnership registration?
An expert from Taxology will understand your business requirements and help you start a Partnership firm by drafting the Partnership deed.
Based on the requirement we also help the partnership firms to become Registered Partnership Firms and obtain all the legal registrations and licenses.
Partnership Firm Plans
All Inclusive Pricing – No Hidden Fee
Partnership deed drafting along with GST Registration, Bank account
Partnership deed drafting along with GST Registration, Bank account, 6 months GST return filing
Partnership deed drafting along with GST Registration, Bank account, 6 months GST return filing and trademark filing
General questions
In a Partnership firm, a minimum of 2 members are required and a maximum of 20 partners are allowed.
An individual who is an Indian citizen and a resident of India can partner in a Partnership firm. Non-resident Indians and Individuals belonging to Indian Origin can invest in a Partnership only with the approval of the Government.
A Partnership firm can be started with any amount of capital. There is no minimum requirement as such.
For the partners, it is necessary to submit a PAN card along with the identity and address proof. It is recommended to draft a Partnership Deed which is to be signed by all the Partners.
A Partnership Firm must file the returns of Income irrespective of the number of profits
or losses made by the Partners.
The Partnership firm and the partners are the same in the eyes of the law. In Partnership firms, the liability of the Partners is also unlimited and all the Partners are said to be jointly and severally liable for the liabilities of the firm. Hence, No Partnership firm doesn’t have separate legal existence of its own.
The Partnership deed lays down all the Terms and Condition of the Partnerships. As it regulates the rights and duties of each partner. A Partnership deed is a very crucial document.
In the case of Partnerships, it is not necessary to prepare audited financial statements each year. However, a tax audit may be necessary based on turnover and other criteria.
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