Partnership Price - 3999/- + Govt. Fee Extra Book Now
Partnership Firm is a business entity where two or more persons agree to contribute capital in a business and share profits or losses as per partnership agreement. It is simple form of business entity for small enterprises. It is easy to form Partnership business and it has minimal regulatory compliance. Depending on the choice of Partners, Partnership business can also be registered under The Indian Partnership Act 1932.
The following are the essential ingredients for the constitution of a partnership -
- There should be an agreement between the parties;
- The agreement must be to share the profits / losses of the business; and
- The business must be carried on by all or any of them acting for all;
The advantages of a Partnership include:
- Partners can establish a partnership instantly, easily and inexpensively.
- Partnerships carry little, if any, ongoing formalities.
- Partnership business is simple form of business entity for small enterprises.
- Partnership business can also be registered as compared to Proprietorship.
Common Registrations for Partnership
- PAN/TAN Registration: PAN and TAN registration is required to be taken from Income Tax Department for filing of Income Tax returns and deduction of tax at source (TDS) and filing of returns of TDS respectively.
- GST Registration: GST registration is based on turnover limit or can be taken on voluntary basis also.
- MSME Registration: MSME or Udyog Aadhaar registration can be obtained in the name of the business using Aadhar number of any one Partner to establish that business is registered under the Ministry of Micro, Small and Medium Enterprises.
- FSSAI Registration: In case Partners are going to operate any business in which FSSAI registration is required then Partners must obtain FSSAI registration from Food Safety and Standard Authority of India.
- Shop and Establishment Registration: Partners is compulsorily required to register his business under Shop and Establishment Act of respective State. The Shops & Establishment registration is a state based labour license legislation enacted under the respective state in which the shop or establishment has been set-up.
- Import Export Code: In case Partners thinking to export / import their product then Partners must obtain Import Export code (IEC) registration from Director General of Foreign Trade (DGFT).
- Trademark: For protection of Logo / Brand name / Trademark, Sole Proprietor can register his Logo / Brand name / Trademark under Trademarks Act, 1999 by filing Trade Mark application to Trade Mark Authority. After registration of Logo / Brand name / Trademark, we protect our Intellectual Property Rights so that no other person can use / copy it.
Current Account Opening
After signing of Partnership deed by both the partners and getting Permanent Account Number and other required registrations, if any, A Current Account can be opened with any Bank for the payments and receipts of the Partnership business. Partners need to submit Account Opening Form, KYC documents, Copy of PAN, Business proof of Address and other documents as required by Bank. We assist in Opening of Bank Account for Partnership business in various Banks of India as per convenience of the Partners.
Partnership Registration Process
Registering a firm under the Partnership Act is not mandatory as in the case of setting up a company. It is always advisable to get your firm registered at Registrar of Firms of the Town/City where you are planning to set up the business. This ensures that you get a legal proof of the firm's existence. Apart from that, the Act provides various benefits and rights to every partner - filing a suit in case of disputes, settling claims against third/external parties, etc. In case of any disputes, a court of law would first check the terms and conditions under which the partnership was formed. Registration of Partnership Deed takes care of this.
Documents required for making an application for registration of Partnership
- Attested Partnership Deed
- Identity proof of partners - PAN Card, Voters' ID card, Passport etc.
- Address proof of partners - Electricity bills, ration cards, Aadhaar Card, Passport etc.
- Address Proof of your firm, e.g. - Current account details or any other licence applied in the name of your firm.
- Stamp Duty of appropriate value (Through Stamp papers)
- Photographs of all partners