Partnership Firm Registration

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Partnership deed drafting along with GST registration, business current account and LEDGERS accounting software. Inclusive of all government fee and taxes.

Partnership deed drafting along with GST registration, business current account, online payment gateway, 3 Month GST return filing and LEDGERS accounting software. Inclusive of all government fee and taxes.

Partnership deed drafting along with GST registration, business current account, online payment gateway, trademark filing, 3 Month GST return filing and LEDGERS accounting software. Inclusive of all government fee and taxes.

Partnership Firm Registration

A Partnership firm is a business entity created by persons who have agreed to share profits or loss of the business. Partnerships are a very good choice of business entity for small enterprises wherein two or more persons decides to contribute to a business and share the profits or losses. In India, Partnerships are widely prevalent because of its ease of formation and minimal regulatory compliance. Also, the concept of LLP was introduced only in 2010, whereas the Partnership Act, 1932 has been in existence before the independence of India. Hence, partnership firms are the most prevalent type of business entity wherein a group of people are involved.

Registration of Partnership Firm

A partnership firm can be registered under Section 58 of the Indian Partnership Act at any time, even subsequent to the formation. The registration of a partnership firm is done through the Registrar of Firm in which 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.

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9 Articles to Read Before Proprietorship Registration

A comparison of the popular types of business entity in India, viz. Proprietorship vs Partnership vs LLP vs Private Limited Company vs One Person Company.

Guide to partnership firm in India including the various types and features. The law relating to partnership firm in India is prescribed in the Indian Partnership Act of 1932. This Act lays down the rights and duties of the partners between themselves and other legal relations between partners and third persons, which are incidental to the formation of a partnership.

A partnership firm is one of the popular types of legal entity wherein two persons join together to undertake a business for profit. Partnership firms are one of the easiest to start. The only requirement for starting a partnership firm in most cases is a partnership deed.

An overview of the procedure for conversion of partnership into LLP. The effects and requirements after conversion of the firm to LLP are also discussed.

Guide to partnership firm bank account opening. To open bank account for partnership – partnership deed, identity and address proof of Partners is required.

File income tax return for a partnership firm online through Bizcruise . Bizcruise  offers Tax Expert support for maintaining compliance for a partnership firm from preparation of financial statements to filing of tax return. Maintain compliance for a Partnership Firm at just Rs.9899.

GST enlistment system, qualification and archives required. Elements with a yearly income of more than Rs.20 lakhs must get GST enrollment. Complete your GST enlistment online with master help from Bizcruise and get your GSTIN in under seven days from the solace of your home.
Record GST return online through Bizcruise with GST Expert Support. You can get ready and document GSTR-1, GSTR-2, GSTR-3 and GSTR-4 return online through Bizcruise . Notwithstanding documenting GST returns, you can likewise give GST solicitations and record buys on LEDGERS to consequently record GST returns.
Online brand name enrollment, brand name search, documentation and Expert assistance for TM recording. Effectively present your brand name application for only Rs.5988 in under a day from the solace of your home. Bizcruise  gives a scope of brand name administrations from brand name documenting to protest dealing with.

Open a new or link your existing ICICI bank current account with LEDGERS for seamless bank account reconciliation, account balance check and sending of payments through NEFT / RTGS / IMPS.

Bank Account Opening

The Reserve Bank of India has laid out Know Your Customer (KYC) norms for opening of current account in the name of a partnership firms and all Banks have procedure to open partnership current account in business name based on partnership deed. Partnership deed is required to open a current account or business account for a partnership firms.

Open a new or link your existing DBS bank business account with LEDGERS for seamless bank account reconciliation, account balance check and sending of payments through NEFT / RTGS / IMPS.

How many people are required to start a Partnership firm?

A minimum of two Persons is required to start a Partnership firm. A maximum number of 20 Partners are allowed in a Partnership firm.

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

The Partner must be an Indian citizen and a Resident of India. Non-Resident Indians and Persons of Indian Origin can only invest in a Proprietorship with prior approval of the Government of India.

What are the documents required to start a Partnership firm?

PAN Card for the Partners along with identity and address proof is required. It is recommended to draft a Partnership deed and have it signed by all the Partners in the firm.

What is the capital required to start a Partnership firm?

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.

Will my Partnership firm have a separate legal identity?

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. This means that if the assets and property of the firm is insufficient to meet the debts of the firm, the creditors can recover their loans from the personal property of the individual partners.

How to open a bank account for a Partnership firm?

To open a bank account for a Partnership firm, a registered Partnership deed along with identity and address proof of the Partners need to be provided.

Who will register a Partnership firm?

Partnership firms are registered by the Registrar of Firms, under the Indian Partnership Act, 1932.

How will Bizcruise help me start a Partnership firm?

An Bizcruise  Associate will understand your business requirements and help you start a Partnership firm by drafting the Partnership deed. Based on the requirements, Bizcruise  can also help register the Partnership deed with the relevant Authorities to make the Partnership Firm a Registered Partnership firm.

How to register the name of a Partnership firm?

Partnership firms are business entity that are owned, managed and controlled by one person. So Partners cannot be inducted into a Partnership firm.

Will my Partnership firm have a separate legal identity?

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. This means that if the assets and property of the firm is insufficient to meet the debts of the firm, the creditors can recover their loans from the personal property of the individual partners.

Will my Partnership firm have a Certificate or Registration?

If the Partnership firm is registered, the Partnership deed will be registered and a Registration Certificate will be issued by the Registrar of Firms.

How can I transfer my Partnership firm?

There are restrictions on the transfer of ownership interest in a Partnership firm. A Partner cannot transfer his/her interest in the firm to any person (except to the existing partners) without the unanimous consent of all other partners.

How to register the name of a Partnership firm?

Partnership firms are business entity that are owned, managed and controlled by one person. So Partners cannot be inducted into a Partnership firm.

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

Yes, there are procedures for converting a Partnership business into a Company or a LLP at a later date. However, the procedures to convert a Partnership firm into a Company or LLP are cumbersome, expensive and time-consuming. Therefore, it is wise for many entrepreneurs to consider and start a LLP or Company instead of a Partnership firm

What are the annual compliance requirements for a Partnership?

Partnership firm will have to file their annual tax return with the Income Tax Department. Other tax filings like service tax filing or VAT/CST filing may be necessary from time to time, based on the business activity performed. However, annual report or accounts need not be filed with the Ministry or Corporate Affairs, which is required for Limited Liability Partnerships and Companies.

Can other people invest in a Partnership firm?

Indian Nationals and Indian Residents are allowed to invest in a Partnership firm without any approval. Usually those who invest in the Partnership firm become a Partner of the firm and in the absence of any agreement to the contrary, all partners will have a right to participate in the activities of the business.

Is audit required for a Partnership firm?

It is not necessary for Partnerships to prepare audited financial statements each year. However, a tax audit may be necessary based on turnover and other criterion.

Types of Partnership

There are two sorts of Partnership, enrolled Partnership and unregistered Partnership. As far as the Indian Partnership Act, 1932, (Act), the main model to initiate business as an association is the finish and execution of a Partnership Deed between the Partners. The Act doesn’t need the Partnership Deed/Partnership Firm to be enrolled and all in all, doesn’t need the Partnership Firm to be an enlisted Firm. In this manner different organization organizations exist as an unregistered firm.

There are no punishments for non-enrollment of an organization firm, and an association firm can even be enlisted after arrangement. Nonetheless, unregistered organization firms have certain rights denied in Section 69 of the Partnership Act, which manages the impacts of non-enrollment of an association firm. A portion of the detriments of an unregistered firm are:

  • An accomplice of an unregistered firm can’t document a suit in any court against the firm or different accomplices for the authorization of any privilege emerging from an agreement or right presented by the Partnership Act.
  • No suit to authorize a privilege emerging from an understanding can be established in any Court by or in the interest of a firm against any outsider except if the firm is enlisted.
  • An unregistered firm or any of its accomplices can’t guarantee set-off or different procedures in a debate with an outsider.

Along these lines, any organization should be enrolled at some point or another.

Difference between LLP & Partnership

Cost: The cost for enrollment of LLP is ordinarily higher than the expense for enlistment of an association firm. LLP enrollment can be finished online through Bizcruise at just Rs.5899. Organization enrollment can be finished online through Bizcruise at just Rs.5899.

Authority: LLPs are enlisted in India under the Ministry of Corporate Affairs, Central Government. Association firms are enrolled with the Registrar of Firms, Controlled by the individual State Government in which the firm is enlisted.

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Restricted Liability Protection: The fundamental favorable position of a Limited Liability Partnership over a conventional organization firm is that in a LLP, one accomplice isn’t dependable or obligated for another accomplice’s wrongdoing or carelessness. A LLP additionally gives restricted risk assurance to the proprietors from the obligations of the LLP. Be that as it may, in contrast to private restricted organization investor, the accomplices of a LLP reserve the option to deal with the business straightforwardly.

Number of Partners: LLPs and Partnership Firms must have at least two accomplices to be enlisted. Post consolidation, a LLP can have limitless accomplices. If there should arise an occurrence of a Partnership Firm, if the quantity of accomplices whenever decreases beneath the required least of 2 because of death, debilitation or abdication of a Partner, the organization firm would stand broke down. Then again, if there should be an occurrence of a LLP, if the quantity of Partners diminishes under 2, the sole Partner can even now locate another Partner to fill the situation without disintegration of the LLP.

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Documents Required for Registration of Partnership Firm

The application for enlistment of Partnership Firm should contain the endorsed enrollment structure for consolidation of an organization, personality confirmation/address evidence of Partners, ensured a genuine duplicate of the Partnership deed went into and verification of the chief business environment.

As identity and address proof of the Partners, any of the following two documents can be submitted:

  • PAN Card
  • Passport
  • Drivers License
  • Aadhar Card
  • Voters ID

Proof of the principal place of business can be established by submitting the following documents:

  • Sale deed in case one of the Partner owns the place of business
  • Rental agreement copy if the premises are rented
  • Copy of latest electricity bill or water bill or property tax receipt

Advantages of a Partnership Firm

One of the primary points of interest of a Partnership Firm is that there are extremely negligible prerequisites regarding consistence. For example, a Company or LLP requires the yearly documenting of its budget reports with the Registrar of Companies. Such records documented with the MCA are additionally made public archives. Then again, enrolled/unregistered Partnership Firms are not needed to record any yearly returns, and the fiscal summaries of an organization firm would NOT be made openly accessible. Likewise, the records of an enrolled/unregistered association firm are not needed to be inspected. Though, the records of a  Limited Liability Partnership (LPP) are needed to be reviewed by a rehearsing Chartered Accountant when the turnover surpasses Rs.40 lakhs per annum or when capital commitment surpasses Rs. 25 lakhs.

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Disadvantages of a Partnership Firm

Organization firm doesn’t furnish its Partners with restricted risk assurance and doesn’t have never-ending presence. Likewise, the premium of a Partner in a Partnership firm isn’t effectively transferrable, and the possession structure doesn’t take into account speculation from Angel Investors, Venture Capitalists or Private Equity Firms. Banks/Financial Institutions additionally want to loan to Companies than Partnership Firms as Companies are isolated elements and the administrative necessity for monetary revealing of Companies – makes an organization more straightforward and organized.

Partnership Firm Taxation

Organization firms might be surveyed either as an organization firm or as a relationship of persons(AOP). Interest paid to accomplices, pay, reward, commission, or compensation to an accomplice will be permitted as an allowance paid to a working accomplice who is a person. In any case, when the Partnership Firm is evaluated as an AOP, the above allowances can’t be asserted. Subsequently, for an association firm, it is more worthwhile to be surveyed as an organization firm than as an AOP. For an association to be evaluated as a firm, the organization should be confirmed by a composed association deed. Personal assessment form of an association firm is documented in  Form ITR-5.

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Partnership Firm Registration Process

At Bizcruise, we can assist you with enrolling an association firm anyplace in India in under seven working days. Toward the start of the commitment, an Advisor from Bizcruise will brief you about the cycle and give you a rundown of archives needed for enlistment of organization firm. You can present the data and archives needed through our versatile application or site. Once, the records and data are checked, an association deed will be drafted and shipped off the Partners. All the Partners must sign the report on stamp paper and transfer a duplicate on the stage. Once, the marked organization deed is accessible; it is enlisted with the concerned Registrar of Firms and Certificate of Registration of Partnership Firm is given. Notwithstanding conveying the Certificate of Registration of Partnership Firm, we can likewise assist you with opening a Bank Current Account for the sake of the association firm through ICICI or DBS Bank.