Partnership Registration

Documents Required for Partnership Registration

  • 1 PAN ( Permanent Account Number) of all Partners (Minimum 2)
  • 2 Address Proof ( Voter Id, Passport, Driving License, Aadhar Card) of all partners
  • 3 Latest passport size Photographs of all partners
  • 4 Registered Office Address Proof - Electricty Bill along with Rent Agreement / ownership proof of proposed registered office.
  • 5 Copy of Mobile bill, telephone bill, electricity bill or Bank Statement of all directors / promoters with Present address (could be different from permanent address).

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Process Involved

Documentation
Information Required
Partnership Deed Drafting
Partnership Deed Signing
Partnership Deed Registration
PAN and TAN

Registration of Partnership Firm

A Partnership is a business structure in which two or more individuals manage and operate a business in accordance with the terms and goals set out in the PartnershipDeed. 

A partnership is easy to form as no cumbersome legal formalities are involved. Its registration is also not essential. However, if the firm is not registered, it will be deprived of certain legal benefits. The Registrar of Firms is responsible for registering partnership firms.

A partnership is formed by an agreement which may be either written or oral. When the written agreement is duly stamped and registered, it is known as "Partnership Deed".

Ordinarily, the rights, duties and liabilities of partners are laid down in the deed. But in the case where the deed does   not  specify the rights and obligations, the provisions of the THE INDIAN PARTNERSHIP ACT, 1932 will apply.

Choose Partnership because

  • Partnership registration is very easy.
  • Partnership registration is inexpensive as compared to LLP.
  • It has minimum compliance requirement.

Need for Partnership Registeration?

If you don’t register your Partnership:

1. Partner Cannot sue firm: A partner in an unregistered partnership firm cannot sue the firm for enforcing any rights under the Indian Partnership Act, 1932.

2. Cannot claim Setoff in a dispute with a third party.

3.The firm cannot sue third parties whereas the third parties would be able to sue the firm irrespective of registration.

In India, Partnership firms are of 3 Types:     

Unregistered Partnership Deed Partnership Registered with Magistrate Limited Liability Partnership

 

 

Advantages
  • Low cost of Formation and compliances and less statutory compliances as compared to Private limited Companies
  • Better decision making and control over the business.

 

Disadvantage
  • A partnership usually has limitations that keep it from becoming a large business.
  • Unlimited liability. General partners are liable without limit for all debts contracted and errors made by the partnership.
  • Since decisions are collective ,disagreements can occur.
Tax Benefits of Forming a General Partnership

General partnerships do not pay income tax. However, the owners or partners of a general partnership do. As with sole proprietorships and limited liability companies, partnerships are pass-through tax entities. This means the profits and losses of a partnership trickle down to the business' owners, who must declare their share of the business' income on their personal tax returns. Partnerships do not have to calculate or pay estimated taxes.

Taxation of partnership

Tax will be payable at a flat rate of 30% plus 3% Education cess & Secondary and Higher Education cess on the total of income tax.

Particulars of the Deed

  1. The Name of the firm.
  2. The Nature of the business to be carried out.
  3. The Names of the partners with their Address.
  4. The place or principal place of business of the firm
  5. The names of any other places where the firm carries on business
  6. The amount of capital to be contributed by each partner.
  7. The Loans and advances by partners and the interest payable on them.
  8. The amount of drawings by each partner and the rate of interest allowed thereon.
  9. The Duties and powers of each partner.
  10. The duration of the firm
  11. Any other terms and conditions as required by partners to run the firm.

FAQs

FAQs

What are the requirements to be a Partner in a Partnership firm?

What are the documents required to start a Partnership firm?

What is the capital required to start a Partnership firm?

How will MyCorporation help me start a Partnership firm?

How to open a bank account for a Partnership firm?

Will my Partnership firm have a separate legal identity?

Will my Partnership firm have a Certificate or Incorporation or Registration?

How to register the name of a Partnership firm?

How can I transfer my Partnership firm?

Can other people invest in a Partnership firm?

What are the annual compliance requirements for a Partnership?

Is audit required for a Partnership firm?

Can I later convert my Partnership firm into a Company or LLP?

In which cities does MyCorporation provide partnership registration?

I can answer any questions you have about starting a business or taxation or funding. You can click on the questions to the left or write your question below