Keynotes on Partnership Firm Registration
It takes 10 to 15 days for Partnership Firm Registration
Completely online service - No physical presence required
No minimum capital requirement
A Partnership includes a business structure in which two or more persons operate a business in terms of conditions 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 minimum compliance
Duties and responsibilities are shared among the partners
At least two persons are necessary
Minimum legal formalities
Easy to commence and registration is optional
Minor cannot be a partner
Inexpensive to form
Flexibility in decision making
Certified copy of notarized partnership deed on stamp paper
Application for partnership business registration in Form 1
Ownership documents if property is owned
Address proof and ID proof of all the partners are as follows :
Copy of voter ID
In the case the property is on rent, then rental agreement should be produced as an evidence regarding place of business
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.
Step 1 - Selecting name for partnership
Step 2 - Making partnership deed
Step 3 - Registration of partnership
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
Responsibilities and rights 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.
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.
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.
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
Limited Liability –
Each partner shares financial risks and liability of the business.
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.
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.
Partners may have different thoughts of how the business will run for its best interest. 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.
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.
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.
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.
The agreements can be enforced through courts and tribunals.
Yes, a foreign resident can become a partner in the firm.
Yes, rights of a partner can be transferred to an outsider.
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.
A partnership can be dissolved in the following methods :
By compulsory discussion
While certain events are occurred that may cause disputes
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
There is no specific rule for minimum capital requirement to start a partnership firm in India. It depends on partners' decision how much capital they can contribute to run their partnership firm.
There is no specific rule to register the partnership firm in India. However it is always suggested to make a partnership agreement since it offers the legal status to the partnership firm.
Partnership agreement requires to be printed on a Non-Judicial Stamp Paper worth Rs. 100 or more depending on the value of properties held in the partnership firm. Usually, the partnership agreement is signed in the presence of all the partners and each of the partners must keep a signed original for his/her records. Once the document is signed by the Partners, the document is witnessed and the signed partnership deed is taken by each of the Partners is duplicate or triplicate.
Minimum Partners : Minimum two people are compulsory to start a partnership firm.
Maximum Partners : There is no provision in Indian Partnership Act regarding the maximum number of partners. However according to Companies Act 1956, maximum number can be :
In the case of banking business- 10
In the case of other business- 20
According to Companies Act, 2013, maximum number shall not surpass 100.
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.