FinAdvisor help you with your general partnership registration in India in the easiest way. Partnership Registration starting from INR 1599/- only.
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What is Partnership Firm?
A Partnership firm is the most important part of a business organization that consists of two or more individuals, who manage and operates a business and divide the profits thereof in an agreed ratio. The formation of a Partnership firm is easy, and the compliance is minimal as compared to companies.
For small-sized businesses, Partnership is the best option, as it requires minimal compliance, low cost, and easy setup. For general Partnerships registration is optional. It is governed by Section 4 of the Partnership Act, 1932.
Contact us now to know how to draft a partnership deed, and also, how partnership firm registration can be done online. Below are the following details requires to form a Partnership Deed.
1. Name and address of the firm and all the partners
2. Nature of business
3. Date of starting of business Capital to be contributed by each partner
4. Capital to be contributed by each partner
5. Profit/loss sharing ratio among the partners
Apart from these, certain specific clauses may also be mentioned to avoid any conflict at a later stage:
1. Interest on capital invested, drawings by partners, or any loans provided by partners to the firm
2. Salaries, commissions, or any other amount to be payable to partners
3. Rights of each partner, including additional rights to be enjoyed by the active partners
4. Duties and obligations of all partners
5. Adjustments or processes to be followed on account of retirement or death of a partner or dissolution of the firm.
6. Other clauses as partners may decide by mutual discussion
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Essential Documents to Register Partnership Firm
- Self-attested copy of PAN card of Partners
- Self-attested copy of Address Proof of Partners
- Utility Bill as Business Address Proof
- Rent or Lease Agreement of Business Address (if the place is rented)
- NOC from the owner of Business Place (if the place is rented)
- Original Partnership Deed
- Application form in the prescribed format
- Any other documents as required by Registrar
Benefits of Partnership Firm
No Minimum Capital
There are no restrictions as such for the minimum capital requirement in the case of the partnership firm. The Partnership firm can be registered even with Rs. 10,000 as total capital.
Easy to Form
A partnership Firm is very easy to form. It comes into existence merely by a Partnership Deed. Its registration is not mandatory. Even after formation, there are no annual filings to be done except Income tax returns.
As a partnership firm requires a minimum of two partners, there’s an availability of larger resources be its financial resources or managerial resources as compared to a proprietorship firm
Its operations are adaptable. Any new partner can be presented or included only by executing a supplementary partnership deed. A partner can retire or can be removed by executing a similar deed.
By its very nature, a Partnership firm enables the sharing of risks by more than one person as the profit and losses are shared by all the partners. This ensures diversified financial risks.
Better Tax Planning
A partnership firm is a legal instrument for better tax planning. The partnership firm is a separate entity and its tax is calculated separately so it can offer compensation and interest to working partners.
How to register Partnership Firm?
Complete the checklist and submit documents
Verification of Documents
Drafting and execution of Partnership Deed.
Get PAN & TAN
Fill Simple Checklist
A compliance manager will get in touch with you to collect your documents along with a simple checklist. You need to fill up that checklist and submit along with your documents for verification. Our team of experts will verify the documents provided by you and take the procedure further. The compliance manager dedicated to you will keep you updated on the progress of Company Registration throughout the process.
Once your documents along with Checklist are submitted, we shall proceed with the application of your Digital Signature and subsequently the approval of your name for your Private Limited Company. You may suggest up to three names of your choice. Names should be unique and suggestive of the Company’s business. We will proceed with application for name for your Private Limited Company in Part A of SPICe Plus form.
We will draft the MOA (Memorandum of association) and AOA (Articles of association). We will file the incorporation documents with MCA through in part B of a form called “SPICe Plus (SPICe +)” along with the subscription statement. Usually, MCA approves the forms within 4-5 days once filed and issues Incorporation Certificate with CIN. PAN & TAN are allotted alongside. You may then proceed to open your Company Bank Account.