Partnership Company Registration
In 10 days. From Anywhere. At a Single Click
- Drafting of Partnership Deed
- Notary of Partnership Deed
- Registration Form
- Filling of PAN application
Partnership firms are relatively easy to start are is prevalent amongst small and medium sized businesses in the unorganized sectors. The document in which the respective rights and obligations of the members of a partnership is written called Partnership Deed. A Partnership Firm is a popular form of business constitution for businesses that are owned, managed and controlled by an Association of People for profit. Partnership firms are relatively easy to start are is prevalent amongst small and medium sized businesses in the unorganized sectors.
With the introduction of Limited Liability Partnerships in India, Partnership Firms are fast losing their prevalence due to the added advantages offered by a Limited Liability Partnership.There are two types of Partnership firms, registered and un-registered Partnership firm. It is not compulsory to register a Partnership firm; however, it is advisable to register a Partnership firm due to the added advantages. Partnership firms are created by drafting a Partnership deed amongst the Partners and Sudnya Startup Mantra can help start a registered or un-registered Partnership firm in India.
Partnership Firm is the most suitable type of business structure as it is very easy to form, and a minimum of two people are required to form a Partnership Firm online. In a Partnership firm, there are very minimal compliances in comparison to other business entities. In simplified language, we can say that partnership creates a relationship between two or more people who have agreed to carry on a business for profit, and these people are known as partners. Enterslice is India's leading platform in providing professional legal services through an online platform, and our team of professionals can make the Partnership Firm Registration process quick and hassle-free.
- Purchase of Plan
- Client to provide details of a Resident Indian Director
- DSC Application
- Company Name Reservation with RUN
- Filing of e-Forms with ROC
- Receipt of Incorporation Certificate
Detail of the firm and its partners such as name and address
Nature of the Partnership Firm
Detail of capital contributed by each Partner
Profit/loss sharing ratio among the partners
Interest on capital invested
Detail of drawings by partners or loans provided by partners
Salaries, commissions or any other amount to be payable to partners
Rights and duties/obligation of each Partner A process which will be followed in case of retirement or death of any partner
Other mutually decided clauses
Partnership deed is an agreement between the partners in which rights, duties, profits shares and other obligations of each partner is mentioned. Partnership deed can be written or oral, although it is always advisable to write a partnership deed to avoid any conflicts in the future. Following details are required in a partnership deed:
A. General Details:
- Name and address of the firm and all the partners
- Nature of business
- Date of starting of business Capital to be contributed by each partner
- Capital to be contributed by each partner
- Profit/loss sharing ratio among the partners
- Interest on capital invested, drawings by partners or any loans provided by partners to firm
- Salaries, commissions or any other amount to be payable to partners
- Rights of each partner, including additional rights to be enjoyed by the active partners
- Duties and obligations of all partners
- Adjustments or processes to be followed on account of retirement or death of a partner or dissolution of firm.
- Other clauses as partners may decide by mutual discussion
- Minimum two persons are required
- Responsibilities and duties are shared among the partners of the Company
- Easy to set-up as partnership firm registration is optional Minimal legal formalities
- Fewer Compliances
- A minor cannot become a partner
- Flexibility in decision making
- Inexpensive to establish
There is no particular process of protecting the name of the Partnership Firm, however, for name protection, you can go with the Trademark registration.
To setup Partnership Firm in India, there is a requirement of minimum two persons and maximum 20 who come together with the motive of earning profits.
For Partnership Firm in India, there is no minimum capital requirement, unlike Private Limited Company. You just need capital to maintain a current bank account balance.
It is not mandatory to apply for a partnership firm in India however it is always advised to get it registered with the Registrar of firms as it gives the legal status to the firm.
In case Partnership Firm is not registered then it cannot file a case against any partner or firm/ any other third party. Without partnership firm registration, Partnership Firm is not eligible to avail the power to claim the set-off.
One can skip the Partnership Firm registration and can apply under MSME. One can file an application for MSME Registration Certificate and current bank account can be opened.
No, Partnership Firm can only be carried by the partners' resident in India. For setting up a business entity with foreigner one can go with the Private Limited Company registration.
Partnership firm needs to file an income tax return on time. Besides this, personal income tax returns of all the partners in the partnership firm. Other than that, GST returns filing is mandatory.
Yes, one can convert Partnership Firm into a Private Limited Company by filing a prescribed form with the authority. We always recommend setup business as Private Limited Company as Partnership Firm is an old method.
To open a current bank account of a partnership firm in India, banks will ask for partnership deed and KYC documents of partners such as ID and address proof as per RBI guidelines, PAN of the partnership firm will also be required by the banks.
Once the partnership deed is notarized, the firm can apply for the PAN. We can also file PAN application on your behalf.
Yes, investments can be made in Partnership Firm, but there is no limited liability of partners unlike LLP or Private Limited Company. In Partnership Firm in India, an Indian resident person can make the investment.
No, you would not be required to visit any department, all the process shall be done online. You would only be required to be physically present to notarize the partnership deed.
The Partnership Firm registration application is submitted with the Registrar of Firms who has the jurisdiction over the place of business of the partnership firm. On the receipt of the application registrar, the firm will scrutinize the documents issues the Certificate of Registration of Partnership Firm.
No, it is not required for Partnership Firms in India to file annual return unlike Limited Liability Partnership (LLP) while it is mandatory for partnership firms to file Income Tax Return before the due date. In partnership Act, 1932 there is no such provision of audit, therefore, it is not required for partnership firm to get its books of accounts audited. However, the tax audit is mandatory if the turnover is more than Rs. 2 Crore.