Partnership Registration

"An agreement between persons who have agreed to share profits of the business carried on by all or any one of them acting for all."

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    Partnership Registration

    Partnership firms in India are governed by the Partnership Act, 1932. Section 4 of the Act defines Partnership as – “An agreement between persons who have agreed to share profits of the business carried on by all or any one of them acting for all.”
    Registering a firm under the Partnership Act (hereinafter called the Act) is not mandatory as in the case of setting up a company. That said it is always advisable to get your firm registered at Registrar of Firms/Departmet of Industries of the Town/City where you are planning to set up the business. This ensures that you get a legal proof of the firm’s existence. Apart from that, the Act provides various benefits and rights to every partner – filing a suit in case of disputes, settling claims against third/external parties, etc. In case of any disputes, a court of law would first check the terms and conditions under which the partnership was formed. Registration of Partnership Deed takes care of this.

    Procedure For Partnership Registration

    STEP 01

    Complete our Partnership Form

    You are required to fill the details in our simple online questionnaire and submit documents.

    STEP 02

    Verification of Documents

    For further procedures, details provided by you will be verified by our experts.

    STEP 03

    Partnership Deed Drafting

    Further after submitting your documents we shall draft your Partnership deed.

    STEP 04

    Apply for TAN & PAN

    We will create all the required documents and file them with ROC on your behalf.

    STEP 05

    Your work is completed

    Done.

    Documents Required For Partnership Registration

    • Statement in Form 1 with the prescribed fees
    • Original copy of Partnership Deed, signed by all partners
    • Affidavit declaring intention to become partner
    • Rental or lease agreement of the property
    • Copy of PAN Card of partners
    • Copy of Aadhaar Card/ Voter identity card

    Steps For LLP Registration

    Step 1 :

    All the above mentioned documents must besubmitted to the Registrar of firms of the state.

    Step 2 :

    A certificate of Registration is then issued, by the Registrar, and a copy should be given to all the partners.

    Step 3 :

    Also, a separate registration with the Income Tax department is to be done in order to avoid any future problems and must obtain a PAN card and a bank accountunder the name of Partnership firm.

    Need for Partnership Registration

    • Partner Cannot sue firm: A partner in an unregistered partnership firm cannot sue the firm for enforcing any rights under the Indian Partnership Act, 1932.
    • Cannot claim Setoff in a dispute with a third party.
    • The firm cannot sue third parties whereas the third parties would be able to sue the firm irrespective of registration.

    What is Included In Our Partnership Registration Package?

    Drafting of Partnership Deed

    Name search & approval

    TAN

    Partnership Pan Card

    Frequently Asked Questions

    What is partnership?

    Partnership is an agreement between two or more people to share the profits of a business. The business can be carried on together by all the partners or any one partner representing the others. A partnership can be for a fixed period of time or it may be limited to a specific project or it may be dissolved at will.

    IS a written partnership agreement required for every partnership?

    No. However, it is usually a good decision for partners to work out the details of the partnership and create a written agreement. If you do not, the state’s rules regarding partnerships will govern your partnership.

    What is a digital signature certificate(DSC) ?

    Digital signature is process to authenticate and validate records electronically. DSC is required for every director of the company as the Ministry of Corporate Affairs (MCA) mandates digital signature of directors on some documents.

    What is the difference between a partnership and a limited partnership?

    A limited partnership must have at least one general partner. … General partners are also subject to unlimited personal liability for the debts of the business. Thegeneral partners of a limited partnership are also jointly and severably liable for the debts of the business, just like partners in a general partnership.

    What is the law of partnersip?

    A partnership is a for-profit business association of two or more persons. Because the business component is defined broadly by state laws and because “persons” can include individuals, groups of individuals, companies, and corporations, partnerships are highly adaptable in form and vary in complexity.

    Can a partnership firm be converted into private limited company?

    Yes, a partnership firm can be converted into private limited company by following the procedure laid down in Companies Act 2013.

    How are partnerships taxed?

    A partnership does not pay any income taxes. Instead, partnership income “passes through” the business to the partner. Each person then reports his or her share of business profits or losses on an individual federal tax return

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