PARTNERSHIP FIRM REGISTRATION

Register a Partnership Firm so you can manage, control, and start your own business!
A partnership firm a created by two or more persons when they agreed to share their profit to loss of the entity. The person who entered into partnership firm are called “partners” of the entity and all together it called as partnership firm. Partnership firm are widely used by young entrepreneur though they can share their investment and ideas to the entity though A Big investment and Good decision always help entity to grow faster.

Overview

What is Partnership firm Registration ?

Partnership firm is easy to register and with less compliances and documentation process. Partnership firm is suitable for medium size undertaking business, where personal efforts and ideas of partners are very essentials. Partnership firm also involves right to own, manage and control business among partners.
Types of Partnership firm

A. Partnership at will

At the time of Partnership at will formation the expiration of partnership firm is not declared it will call as Partnership at Will. According to Indian partnership Act 1932, Section 7 the partnership at will should Qualify the below two criteria mentioned.
1. Deed should not carry any fixed period of time of partnership firm.
2. No Provision In regards to determination of their partnership.

B. Particular Partnership

A Partnership firm formed to carry a particular scope of business such partnership firm is known as particular Partnership.
After completion of particular business firm get dissolved. In order to continue business partners can enter into agreement again to carry partnership firm.

Documents Checklist

Documents required for entity to called has proprietorship form

Documents Checklist for partners

Pan Card Copy

Aadhar Card Copy

Passport Size Photo

Contact details of partners

  • Contact details of partners (Email-ID And Mobile Number)
  • Utility bill Proof (Light bill / Telephone bill / Gas bill / Property tax bill / Bank Statement) (Any one Documents).

The Documents Required for Registered office premises.

Non-Rented

Utility bill Proof
(Light bill / Telephone bill / Gas bill / Property tax bill / Bank Statement) (Any one Documents).

Rented

  • Rent Agreement.
  • Light bill of premises.
  • NOC from Owner.

Benefits

Advantages of sole proprietorship firm

A. Ease of formation.

Formation of partnership is easy because all that need in partnership business is mentioned in Partnership agreement between partners and the partnership Agreement is prepared in writing although after oral conversation between partners of entity.

B. Talent can be Pooled

Partners can divide their works depending on their skill and knowledge and capacity. This will help partnership entity to grow faster.

C. Financial Resources

Partners can pool resources and can make the strong financial base of the firm. Though which creditors will more willingly to provide credit facility to firm on reputation of partners and soundness of firm carried out by partners.

D. Flexibility

The structure of partnership firm is very flexible, with complete freedom to agree how the business to be managed and financed. The nature and place of business and be altered at will. In partnership firm, existing partner can exit and new partner can be joined whenever required.

E. Informed, Balanced and Careful Decisions

Partners can bring their expertise, knowledge which will help other to take good decision in firm, though all partners are similarly responsible for taking wrong decision and losses. All Partners are compelled to take careful decision and caution path for firm, Partners are forced to take all the necessary steps which is beneficial for partnership firm.

Disadvantage of sole proprietorship firm

Proprietorship entity has unlimited liability against his proprietorship firms ends to his personal property. Limitation of management skill into his proprietorship entity though it has single decision maker. Limited scope of expansion due to lack of capital. 

A. Unlimited Liability

Unlimited liability refers to the full responsibility of owners and partners for debt of entity and this liability cannot be capped. Every partners of the firm are jointly liable for debt of the firm.

B. Limited Resources

Partnership is good and so far it can be started with small capital investment by its partners. But when it comes to expansion it become handicapped though limitation on numbers of partners and limited amount investment in partnership fir. After Beyond the point the Expansion of it business get stopped.

C. Conflicts

Partnership is built on trust and mutual consent amount partners. The dishonesty of one partner can ruin entire business and can put firm into serious problem. This is not mandatory the partners started the partnership business on mutual consent will have similar opinion on all various decision. Though the partners will have to choose the best decision amount it which can help firm to grow in future.

D. Uncertain Future

The firm will have to close down the shutter on death of one partner, insolvency, lunacy of any one among the partners, new partners can only be inducted in firm only when all partners agree to do so.

E. Transferability of Interest

The transferability of interest of one partner to other outsider partner is not possible unless existing partners unanimously agree to do so. Though an investment in a partnership business, therefore, becomes an illiquid asset to firm.

Packages

Choose your package & proceed to pay

BASICSTANDARDPREMIUM
Drafting of Partnership DeedDrafting of Partnership DeedDrafting of Partnership Deed
PAN of the EntityPAN of the EntityPAN of the Entity
TAN of Partnership firmTAN of Partnership firmTAN of Partnership firm
MSME RegistrationMSME Registration
GST Registration
Rs. 1499Rs. 2499Rs. 3499

Process

Get the process done in 5 Easy Steps

1. Choose the package and fill the form.

2. Make Payment

3. Our Executive will get in touch with you and verify the details.

4. Filing the Application to concern department

5. Congratulations your Work is complete

FAQ's

Q. Number of person required forming partnership firm?

Answer: As per partnership act 1932, Minimum 2 and maximum 20 members are allowed to form any partnership firm.

Q. Documents required opening a bank Current account for partnership firm?

Answer: For opening current account following documents is required partnership deed, pan card of partnership firm, pan card of all partners, pan allotment letter, aadhar card of all partners, Photo of all partners.

Q. What documents are required for opening bank current account in name of Sole proprietorship firm?

For Opening a current account in the name of sole business you should be having at least two documents and in the name of entity.

Below are few list of documents for sole proprietorship.

  1. 1. MSME / Udyam Registration.
  2. 2. GST Registration.
  3. 3.Shop & Establishment Act Registration popularly Known as Gumasta License.
  4. 4. Food License (If Applicable).
  5. 5. TAN Registration.

Apart from this Pan card, Aadhar card, And Passport size photo are also required for opening current account in the name of sole trader.

3. Who is an authorized signatory in a partnership firm?

Answer: Authorized signatory is a person who is being authorized by all partners to act on behalf of partnership firm.

4. Documents required for GST registration of partnership firm?

Answer: following documents are required for registration of GST in partnership firm are mentioned below
1. Partnership deed
2. Pan card of partnership firm.
3 .KYC documents of all partners pan card, aadhar card, photo, email id and mobile number of partners.

5. Minimum capital contribution is required to register a partnership firm?

Answer: There is no minimum capital contribution is required to form a partnership firm.

6. Is it compulsory for partnership firm to file an income tax return every year?

Answer: Yes, It is compulsory for every partnership firm to file their ITR every financial year, irrespective of profit or loss in financial year.

7. Is change of partners is possible in Partnership firm?

Answer: Yes, with consent of all partners the change of partners can be done in partnership firm.

8. Is audit is compulsory for partnership firm?

Answer: Auditing of partnership firm is not compulsory, though Income and GST audit may occur depending on turnover of firm.

9. Conversion of partnership to company/LLP is possible.

Answer: Yes, with consent of all partners conversion of partnership firm to company/LLP is possible. Though certain procedure to be followed for conversion of process of partnership.

10. Stamp duty on partnership deed?

Answer: Stamp duty on partnership deed depends on capital contribution which changes every state to state.

12. When can we apply for PAN and TAN for Partnership firm?

Answer: Once partnership deed is ready, then we can apply for PAN and after getting Pan card we can apply for Tan of partnership firm.

Still have questions? Ask an expert for help

Call us at+91-7738877316

Email us support@setupfilings.com

Call us at +91-7738877316

Email: support@setupfilings.com