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Partnership Firm Registration

A partnership firm is best for small businesses that plan to remain small. Low costs, ease of setting up and minimal compliance requirements make it a sensible option for such businesses.
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Partnership Firm Registration

A partnership is a type of business entity that is brought into existence by virtue of an agreement known as a Partnership Deed. In essence, a Deed is an agreement between the Partners on the entire business of the partnership. In India, a partnership business is governed by the Indian Partnership firm Registration  Act, 1932.

In India, anyone can form a Partnership Firm either by drafting a partnership deed/agreement in writing or just by Oral Agreement. Hence, as per law, it is not mandatory to have a Written Partnership Deed. Even registration is not mandatory. But Partnership Firm Registration is in order to avoid any conflict between the partners in the future, it is highly recommended to have a written agreement and get it registered.

Indian Partnership Act 1932 is that the governing law which regulates the partnership firms in India. As per the act “Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all”. The maximum number of members during a partnership is 10 for banking business and 20 for other businesses to enter into a partnership firm. Will get more information Regarding Partnership firm Registration in this.

Partnership Firm Process

Advantages Of Partnership Firm Registration

  • Minimum Compliance
  • Simple To Begin
  • Sharing of Risk
  • Comparatively Economical
  • No Annual Returns
  • No Statuary Audit

Documents Required for Partnership Registration

Form No. 1 (Application for registration under Partnership Act)
Original copy of Partnership Deed, signed by all partners
Affidavit declaring intention to become partner
Rental or lease agreement of the property/campus on which the business is set
GST Registration
Current Bank Account

How We Do It ?

How-we-Do-Partnership-Firm-Process

Frequently Asked Questions - FAQs

  • What are the requirements to become a partner in a partnership firm?

    Only Indian resident person are allowed for the partnership firm. if you have any foreign partner then you can go with the pvt ltd company only.

  • What are the annual compliance or yearly maintenance for the partnership firm?

    Basically only 2 annual compliance for the partnership firm –

    1 Business Partnership Income Tax Return

    2 Personal Income Tax Return

    3 Business GST Return Filing

    if we talk about the cost, its cost nearby 4000 -5000/- per year.

  • If all partners wish to Close the partnership, how can they do?

    If the partners of a firm wish to close the partnership, they can do so by dissolving the partnership by notice, if it is a partnership of will. A partnership can be dissolved in accordance with the terms laid out in the Partnership Deed, or they can do so creating a separate agreement.

  • How long will it take for the entire registration process to complete?

    It depends on the documents provided by you and the Registrar of Firms approval process. It normally takes about 10 to 15 working days. The registration of Partnership Firm is subject to Government processing time which varies for each State.

  • How many partners are required to register a Partnership Firm?

    Minimum of 2 partners are required to register partnership firm. And There can be more than 2 partners.

  • What is the scope of liability when it comes to partnerships?

    Every partner is jointly liable with all the other partners and also individually, for all acts/activities of the firm, during the course of business while he/she is a partner. This means that if a loss or injury is caused to any third party or a penalty is levied during the course of business all partners will be held liable even if the injury or loss was caused by one of the partners.

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