Partnership Firm
Registration in India
Register Your Company with
ZERO Professional Fees at Just Rs 2,360/-
Includes All the Government Fees* | DSC Fees | GST Charges as Applicable.
What Is Partnership Firm ?
When two or more people come together to start a business and share its profit and loss is known as Partnership Firm. The Indian Partnership Act, 1932, governs a partnership firm in India. The partnership agreement can be for a specific task or a job. It can be for a specified period or a general partnership agreement that exists until it is dissolved.
A partnership firm registration in India can be both registered or unregistered as a firm under the Partnership Act. However, an unregistered partnership firm cannot sue anyone as it does not have any Identity.
Starting a partnership firm in India is a simple process and requires a list of compliance amongst all the other forms of organizations. But, unlike other companies or LLP, a partner in a partnership firm in India carries an unlimited liability towards the creditors and debt of their partnership firm. All partners in a partnership firm are jointly held liable for debts and losses incurred by the firm. They also have a principal and agent relationship between all the partners.
Services Covered
- Drafting of Partnership Deed
- Applying For the PAN Card of the Firm
- Applying For TAN Card of the Firm
- MSME Certificate
- Bank Account Opening Support
Why Choose Us
Partnership Deed Drafted by Professionals
A well-drafted partnership deed is essential to have a proper disclosure of the rights and duties of partners, their share in profit and remuneration. Our team makes a customized deed for every client to ensure the right drafting of the partnership deed as per the requirement.
Most Competitive & Transparent Rates
Our team of trained and experienced graduates takes care of your registration process. Independent qualified professionals further verify the process. We follow a strict concept of Maker and Checker.
Legal Compliance
Dashboard
We provide a Legal Compliance Dashboard that acts as your secretary for legal work. It intimates you about the upcoming compliances and hence makes sure that you do not miss any of it.
Results in Numbers
List of Required Documents
Proof For Registration
- PAN Card of All the Partners.
- Aadhar Card and Permanent Address of Each Partner.
- Name of the Partnership Firm and Place of Business.
- Address Detail of Partnership Firm Intending to be Incorporated.
- Details Nature of Partnership and Share in Revenue by Each Partner.
Minimum Requirements
- Minimum 2 Partners Required.
Advantages
Easy To Register
Establishing a Partnership Firm is easy as there is a requirement of only a few legal formalities in its incorporation. Partnership Firm registration is not mandatory in India. Yet, it is advisable to register a partnership firm as there are many legal and financial advantages for the same. At Legal Workmate, we have a team to carry out the partnership firm registration in India in an organized manner.
Low Compliance
A partnership firm does not need to file ROC returns and conduct regular board meetings, unlike the other forms of organization. Due to this factor, it is more cost-competitive as compared to a Private Limited Company.
Easy To Select Name
The business partners or directors are free to opt for any name for their partnership firm, as there are no stringent naming guidelines. Yet, partners should assure that their company’s name is not similar to a registered trademark or copyright of the third party.
No Mandatory Statutory Audits
A Partnership Firm is not required to file financial statements with the Registrar of Firm. Hence it is not mandatory to get the account book accounts audited by a Chartered Accountant. Nonetheless, if the turnover exceeds the specified limits or the profit is below a certain percentage, then it becomes mandatory to get a Tax Audit done under Income Tax Act.
Tax Benefit
Against the most of the organization that is being taxed at the rate of at least 30% in India, the Private limited company is taxed at a rate of 25% if the turnover is less than Rs 400 crores.
Tax Benefit
Against the most of the organization that is being taxed at the rate of at least 30% in India, the Private limited company is taxed at a rate of 25% if the turnover is less than Rs 400 crores.
Frequently Asked Questions
When two or more people come together to start a business and share profit for the same is called a partnership. The business in a partnership can be by all the partners or a few of them acting as a representative of other partners.
As per the Partnership Act in India, a minimum of two partners are required to incorporate a partnership firm. The maximum limit of the members shall not exceed beyond 20 in the case of regular business and 10 for banking business.
Anyone who fulfills all the criteria given below can become a partner
(I) Should be a Major (More than 18 years of age)
(II) should be sane (Not of unsound mind)
(III) Should not be disqualified by law from entering into a contract by court.
The Partnership Act does not prohibit a non-resident from joining an Indian partnership firm in India.
No, there is no minimum capital requirement to start a partnership firm. A partnership firm can be started with a capital of INR 5000/- also. Further, the capital in the partnership firm can be introduced in any form that is in cash or kind.
In a partnership firm it is not necessary for each partner to contribute capital in the ratio of profit. Contribution is based on the agreement between the partners, and the profit-sharing ratio is indicated in a separate clause.
A partner has the following rights in the partnership firm:
(I) To take part in the day to day business of firm.
(II) To share profit and loss of the firm.
(III) To inspect and verify the books of firm and contracts.
(IV) To receive remuneration and Interest on capital as per the partnership deed of the firm.
In a partnership firm any conduct of one partner applies to all the partners of the partnership firm.
A partnership firm cannot become a partner of another partnership firm because it is not a legal person. Neither a Partnership firm becomes a partner in an LLP.
A partnership firm can be dissolved in any of the following manners:
(I) By agreement of dissolution entered by partners.
(II) By compulsory dissolution, if specified in the partnership deed.
(III) On the happenings of certain events specified in the partnership deed.
Yes, a new partner can be introduced in the partnership firm with the concern of all the partners. However, the mode of introducing a new partner or successor should be according to the partnership deed. A new partnership deed is required to be executed in aces of change in partners.
Yes, a new partner can be introduced in the partnership firm with the concern of all the partners. However, the mode of introducing a new partner or successor is according to the partnership deed. Further, a new partnership deed is required to be executed in aces of change in partners.
A limited Liability Partnership firm is a much more organized business structure and has a bit more compliance than traditional firms. However, the primary advantage of LLP is that the partners have a limited Liability till the amount of their contribution.