Partnership Firm

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Services

Our Package includes the followings:

  1. Drafting of Partnership Deed
  2. PAN Number
  3. GST Registration
  4. MSME Registration (Complimentary)
    5. Any Government fee, if applicable shall be paid by you directly for which we will share the challan if required.
    Rs.5850/-
    Rs.4500/-

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About Partnership Firm

Partnership in the Corporate world refers to a relationship when two or more people who decide to share the profits & losses of a business carried on by them, all or any of them acting for all. The percentage of ownership depends on certain factors as decided with mutual consent of the partners. Partnership firm thus is a firm which allows joint ownership of a business. There are certain rules and regulations that have to be followed while setting up a Partnership firm.  

Registering a partnership firm is not compulsory under the Indian Partnership Act, 1932 however, a partnership firm can be registered under Section 58 of the Indian Partnership Act at any point of time, even subsequent to the formation. The registration of a partnership firm is done through the Registrar of Firm in which state the partnership firm is situated. When the Registrar of Firms is satisfied that the provisions of Section 58 are complied with, a record of entry of the statement is made in the Register of Firms and Certificate of Registration is issued in the name of the Partnership Firm.

Documents Required

  Copy of PAN card of the partners
  Address proof of Partners
  Photographs of Partners
  Copy of electricity bill/landline bill/water bill.
  Copy of Rent agreement and No objection certificate (NOC) from the owner (if rented)
  Details of Business activity including name of top products/services.

Benefits of Partnership Firm

Ease of Formation:

Like sole proprietorship firms, partnership business can be formed easily without any compulsory legal formalities. It is not necessary to get the firm registered. A simple agreement or partnership deed, either oral or in writing, is sufficient to create a partnership.

Better Decisions:

The partners are the owners of the business. Each of them has equal right to participate in the management of the business. In case of any conflict, they can sit together to solve the problem. Since all partners participate in the decision-making process, there is less scope for reckless and hasty decisions.

Flexibility in Operations:

A partnership firm is a flexible organization. At any time, the partners can decide to change the size or nature of the business or area of operation. There is no need to follow any legal procedure. Only the consent of all the partners is required.

Partnership Firm Taxation:

Partnership firms may be assessed either as a partnership firm or as an association of persons (AOP). Interest paid to partners, salary, bonus, commission, or remuneration to a partner will be allowed as a deduction paid to a working partner who is an individual.

Frequently Asked Questions (FAQs)

 

A minimum of two Persons is required to start a Partnership firm. A maximum number of 20 Partners are allowed in a Partnership firm.
The Partner must be an Indian citizen and a Resident of India.
There is no limit on the minimum capital for starting a Partnership firm. Therefore, a Partnership firm can be started with any amount of minimum capital.
A partnership firm can be registered under Section 58 of the Indian Partnership Act, 1932.
Only a registered Partnership firm can file a 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. Also, only a Registered Partnership firm can claim a set off (i.e. mutual adjustment of debts owed by the disputant parties to one another) or other proceedings in a dispute with a third party. Hence, it is advisable for Partnership firms to get itself registered sooner or later.
No, a Partnership firm has no separate legal existence of its own i.e., the Partnership firm and the partners are one and the same in the eyes of law. Liability of the Partners is also unlimited, and the partners are said to be jointly and severally liable for the liabilities of the firm.
Partnership firms will have to file their annual tax return with the Income Tax Department. Other tax filings like GST return filing may be necessary from time to time, based on the business activity performed. However, annual reports are not required to be filed with the Ministry of Corporate Affairs as required for Limited Liability Partnerships and Companies.
Yes, there are procedures for converting a Partnership firm into a Company or a LLP at a point of time. However, the procedures to convert a Partnership firm into a Company or LLP are a bit expensive and time-consuming. Therefore, it is wise for many entrepreneurs to consider and start a LLP or Company instead of a Partnership firm.
There is no requirement for Partnership Firms to get their financial statements audited every year. However, a tax audit may be necessary based on turnover and other criteria as applicable.

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Indian MSME Helpline Private Limited

Indian MSME Helpline Private Limited is not affiliated with Ministry of MSME / any other Government organisation. It is run by professionals.

© 2015, MSMEhelpline.com. All Rights Reserved.
Terms & Conditions | Privacy Policy