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OneClick Business Solutions

REGISTER A PARTNERSHIP FIRM

Keynotes on Partnership Firm Registration

Partnership Firm in 10 to 15 days.
Completely online service - No physical presence required
No minimum capital requirement

PARTNERSHIP FIRM REGISTER

Apply Here





What is Partnership Registration?

A Partnership includes a business structure in which two or more persons operate a business in terms of terms and aims stated in the Partnership Deed. Partnership registration is quite easy and common among small and medium sized organizations in unorganized sector. At One Click Business Solutions, we offer Partnership Registration service in fastest turnaround time.

For Partnership Registration purpose, it is compulsory to agree on a name of the partnership and then set up a partnership deed. A partnership deed is a document mentioning particular responsibilities and rights of the partners and it must be in written form. The terms of the Partnership Deed can be different to satisfy the interests of the partners. It can even be made different to the Indian Partnership Act, 1932 but if the Partnership deed is still on any feature, then the provisions of the Act would be applicable.

Select Partnership because :

Inexpensive registration procedure as compared to LLP

Very simple registration process

Needs least compliance

Aspects of Partnership Firm Registration in India

Duties and responsibilities are shared among the partners of the

At least two persons are necessary

Least legal formalities

Easy to commence and registration is optional

Minor cannot be a partner

Less compliance

Inexpensive to form

Flexibility in decision making

What documents are needed for Partnership Firm registration in India?

Certified copy of notarized partnership deed on stamp paper

Application for partnership business registration in Form 1

Ownership documents if property is owned

Affidavit's specimen

Address proof and ID proof of all the partners are as follows :

Aadhar Card

PAN

Copy of voter ID

Driving License

Passport

In case the property is on rent, then rental agreement should be produced as an evidence of place of business

What is the registration procedure of partnership firm in India?

In order to do online registration of Partnership business in India, following processes should be followed :

An application form must be filed with the registrar of business of the state where the business is to be registered with required fees

Application form for partnership business registration should be signed by all partners or their agents

Next partnership deed is made on stamp paper which is required to be signed by all the partners with notarization

If the registrar is satisfied after verifying the prescribed documents, then he will register the partnership business in Register of Firms and a certificate of registration will be issued by him. Latest information about all the business is included in Register of Firms and it can be viewed by anybody on payment of the certain fees.

Steps of online registration process of partnership in India

Step 1 - Selecting name for partnership

Step 2 - Making partnership deed

Step 3 - Registration of partnership

The main ingredients of partnership deed

Nature of the Partnership

Detail of the partnership and its partners like name, address etc.

Ration of sharing profit or loss among the partners

Detail of capital contribution by every Partner

Detail of drawings by partners or loans offered by them

Interest on capital invested

Duties or responsibilities and rights and of each partner

A procedure that will take place on retirement or death of a partner

Commissions, salaries or any other amount that are payable to partners

Other clauses that are mutually decided

Partnership deed should be properly stamped and notarized. One Click Business Solutions has a team of professionals to prepare your partnership deed in quite experienced way.

Post needs of Partnership Registration

Once the Partnership business registration is over, it is essential to take following steps to get an edge over the competitors :

Intellectual registration of property -
Intellectual registration of property offers protection to the patent and trademark from violation and duplication. With this, your brand and market value cannot be affected by competitors.

Open a Bank Account -
First a bank account on the name of the partnership firm is needed to be opened within 30 days of the partnership firm registration. In order to open bank account, you require submitting PAN and other documents as needed by the bank.

Stationary -
The next step includes printing of stationery like letterheads and billheads including name of the business.

Preparing documents -
The expansion of the business depends on consistent procedures and policies. The partnership business will depend on strategies and also includes certain agreements depending on its structure.

GST Registration -
GST (Goods and Service Tax) registration is essential for business with annual turnover more than Rs 40 Lakhs (Rs 20 Lakhs for north-eastern states). GST registration is compulsory for businesses like e-commerce, export-import, and market place aggregator.

Advantages of Partnership Firm

Easy to commence

Get advantage from the combination of skills of two or more individuals as there is a wider pool of skills, knowledge and contacts

Enhanced ability to raise funds with more than one proprietor

Business risks can be shared by all the partners in a partnership business

Accessibility of increased resources

Disadvantages of Partnership Firm

Limited Liability –
Each partner shares financial risks and liability of the business.

Agreement –
The partnership business is controlled jointly so it is important for all partners to be agreed with things that are performed. This denotes that there is limited authority to manage the business as compared to sole proprietorship.

Taxation –
Partners are required to pay tax in the same way like sole traders. Each of them must submit self-assessment tax return every year. If the partnership and partners exceeds certain level, they will be treated under greater level of personal taxation as compared to a limited company. This implies that setting up a limited company would be more helpful as laws of taxation are more favourable.

Profit sharing –
Profits are shared equally among the partners. This can cause inconsistency where one or more partner may not contribute a fair portion of effort for running or managing the business but still enjoys the rewards.

Disagreements –
Partners may have different thoughts of how the business will run for the best interest of the same. This can cause disputes and disagreements that can harm the business and also relationship of those who are concerned. Due to this, it is suggested to make a partnership deed during formation period. It ensures everyone aware of the process that will be followed in case of disagreement.

Frequently Asked Questions

Ques: What is known as a partnership?

A partnership is a form of entity in which two or more individuals are involved for starting a business. The business thus formed can be run and managed by one or more partners.

Ques: Is written agreement compulsory in the partnership?

No, a written agreement is not compulsory in a partnership. Still it is a good option rather than its oral counterpart to prevent disputes in future.

Ques: How is a partnership business taxed?

Any income taxes are not paid by a partnership firm although it is compulsory for filing of tax return. Income from partnership passes to the partners who need to report his or her share of profit or loss on the individual tax return.

Ques: How can the agreement be enforced?

The agreements can be enforced through courts and tribunals.

Ques: Is a foreign resident eligible to be a partner of a firm?

Yes, a foreign resident can become a partner in the firm.

Ques: Can a partner transfer his or her rights to an outsider?

Yes, rights of a partner can be transferred to an outsider.

Ques: Can a successor be nominated by a partner?

Yes, a successor can be nominated by a partner to take his place on the event of retirement or death. The method of introducing a successor or a new partner is included in the provisions of the partnership deed. A new partnership deed is needed once the new partner is included in the firm.

Ques: How can a partnership be dissolved?

A partnership can be dissolved in the following manners :

By compulsory discussion

By agreement

While certain events are occurred that may cause disputes

Ques: What documents are needed to begin a partnership business?

PAN Card of the partners with ID proof and address proof

A Partnership deed is to be made and dully signed by all the Partners in the firm

Ques: How much capital is needed for registration of partnership firm in India?

Unlike private limited company, there is no minimum capital requirement for partnership firm in India. You need only capital to manage a current bank account balance.

Ques: How to perform registration of the name of the partnership business in India?

There is not any specific procedure to protect the name of the partnership firm. Trademark registration is the required step for name protection.

Ques: How many partners are compulsory to make a partnership firm in India?

To commence partnership firm in India, minimum 2 and maximum 20 persons are required. They come together to earn profits.

Ques: Is it compulsory to register a Partnership Firm?

No, it is not compulsory to apply for a partnership firm in India. However it is always suggested to get it registered with the Registrar of firms since it offers the legal status to the business.

One Click Business Solutions Private Limited use state-of-the-art technology to save time and money. We are more efficient to offer cost advantage to our clients. We are making an enhanced level of transparency in legal services by using technology and processing automation to utmost level. Our professional team accomplish wonderful advisory role. They help to process partnership firm application for registration and also offers post registration services.





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