Partnership Firm is the common suitable kind of business structure as it is very simple to form. A firm or company formed between 2 or more partners to earn a profit is named as a "Partnership Firm". In a Partnership firm, there are very least compliances in comparison to other business entities.
A "partnership deed" is a legitimate document that is created to form a partnership firm. In India, a supreme law that is Indian Partnership Act 1932 regulates the partnership firms. According to the act " Partnership is the relation among partners/individuals who agree to share the profits of the business as equal and the same for all.
The minimum count of partners is 2 and there is no set limit for the maximum number. Before commencing a partnership firm you must know that partnership firms are not separate legal entities. The partnership firm can't be debtor or creditor plus own property.
The partnership deed needs to mention "amount of profit or losses share between partners", to avoid future interruptions. So partnership deed registration is required. However registration of Partnership Firm is not mandatory. All partners can carry on business on part of others.
The partnership firm dissolves in some cases that is the number of partners decreases below 2 in case of death, incapacitation or withdrawal of a partner.
Before submitting the names of your partnership firm it's important to check them carefully through online software. Wherein you can see the availability of names. Give 2-3 names for name approval with MCA.
Our expert team drafts a partnership agreement for you wherein all the specifications by the partners are specified. You can verify all the documents and the partnership agreement. After all the preparations the final application is forward to the registrar of firms.
Complying to all the guidelines of Indian partnership Act. A certificate of Registration is then issued, by the registrar of firms and a copy should be given to all the partners. Along with PAN & TAN of the firm with opening of a bank account of your partnership firm.
A Partnership is where two (or more) people join hands to carry out a business for profit. The partners become joint business owners and carry out operations governed by the partnership deed. The regulations are least and it makes it a desirable option for businesses having joint owners. However, in a partnership firm the partners are jointly and individually liable for debts of the firm. This form of structure is ideal if there are no/less requirement of external funds and low risk of bad-debts for example consultancy firms.
Partnership firms are governed by the Indian Partnership Act, 1932. Under the act, registration is not mandatory but it is advisable due to following reasons:
A partnership firm can be registered whether at the time of its formation or even subsequently. The application for registration is to be made to the registrar of firms of the region in which the business is situated. It is advisable to get the firm registered as soon as it starts its business to avail the rights that can be enjoyed only by a registered firm.
The name of a partnership firm should not contain any words which indicate the approval/support of the government other than a case where the government has given its written consent for the use of such words as part of the firm’s name. Key pointers:
The government fees applicable varies from state to state based on partner contribution. In most states the fee falls in range of Rs.1000-1500 along with stamp duty. Our experts will guide you on this. You will be charged only on actual government fees.
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