Partnership

Introduction

A partnership firm is a business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Deed that may or may not be registered. Partnership governed by Section 4 of the Partnership Act, 1932.

Separate legal entity

No, Firm has no separate legal entity, all legal action would be against partners. If debt incurred by the firm is the responsibility of its partners respected ratio.

Minimum requirements to establish

Minimum 2 partners

No minimum capital invest

Name of establishment

Partnership firm has right to choose any name except some names which are restricted as per the Emblems and Names (Prevention of Improper use) Act, 1950.

Minimum Capital Required

No, as per mutual consent of investment ratio

Minimum & Maximum members required

Minimum 2 members and Maximum 50 members

Transfer to other

Partners has right to transfer his share to other otherwise after death of partners his legal hairs has right automatically, if legal hair will be interested.

Registration required

No mandatory laws to registered deed of partnership but we recommend registering partnership deed for future.

The deed should contain names of the partners and their addresses, the partnership name, the date of commencement of operation of the firm, any capital invested by each partner, the type of partnership and profit-sharing ratio, rules and regulations to be followed for intake of partners or removal.

Registration of partnership

Partnership firm will be register from the Registrar Firms, Societies and Chits.

Supporting documents for firm registration-

1. Form No. 1

2. Original copy of Partnership Deed, signed by all partners

3. Affidavit declaring intention to become partner

4. Rental or lease agreement of the property/campus on which the business is set

5. Partner’s scan documents like Photo, Signature, ID Proof, Pan Card and Address Proof

6. Prescribed Fee

Registration optional

Applicable some other registration-

- in Shop and Establishment act from the Municipal Corporation

- in GST if applicable by your turnover from the GST portal

- in PF & ESI from Provident Fund & Employees State Insurance Corporation

- in Fire Safety from Fire Department

- in FSSI as FSSI license etc

Required documents to starting business

A registered/unregistered partnership deed is necessary to starting business.

Other some documents is necessary to run your business

- PAN of Partners & Firm

- Aadhar of Partners

- Rent/lease agreement of venue

- Certificate from Municipal Authority under the Shop and Establishment Act etc

Bank Account

Must be open a Current Account by the Name of Partnership firm in any bank. For opening of Bank Account by the name of Partnership firm following documents required

- Deed of Partnership

- PAN of Partners

- PAN of Partnership (if available)

- Aadhar of Partners

- Ownership or Rent/lease agreement

- Certificate from Municipal Authority under the Shop and Establishment Act etc

Winding up

Partners have right to close/winding up partnership firm at any time but liabilities will be transfer to partners.

At any dispute partnership firm will be dissolved and his assets, profit and loss will be divided in respected ratio.

Economical benefits

Partnership registration fee is much cheaper than Company.

No mandatory to appoint auditor

No annual return filing

Start your business within 3 days, we are ready to assist you

Step 1

Discussed with necessary formalities & registration process

Step 2

Draft and file the necessary documents for registration and license to the departments

Step 3

Start your business within 3days

>> Start Your Partnership Firm at Rs. 4,999/- only <<

Our experts will provides full assistance and professional guidance on many of the processes involved in registering your business, GST, import/export code, PF/ESI or Shops and Establishments License, draft any deed, accounting method, returns formalities & filing etc.

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