PARTNERSHIP FIRM REGISTRATION
A firm or company established between two or more partners with the goal of earning profit is called as a Partnership Firm.It is not compulsory to register a partnership firm but there are added advantages if a partnership firm is registered.Partnership deed is the legal document which is created to form a partnership firm.
Indian Partnership Act 1932 is the governing law which regulates the partnership firms in India.As per the act “Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all”. Maximum number of members in a partnership is 10 for a banking business and 20 for other businesses to enter into a partnership firm.
A partnership firm would be dissolved if the number of partners reduces below 2 in case of death,incapacitation or resignation of a partner.
- Partnership Deed Drafting
- PAN Application
- TAN Application
- Filing of deed and other documents with the Registrar of Firms
- Issue of Registration Certificate
- Affidavit filing with the registrar
For Partners :
- Passport size photos of partners
- Address proof of partners ( Any one of electricity bill or bank statement or landline bill or mobile bill )
- Aadhaar card of partners
- PAN card of partners
For Registered Office :
- Rent agreement / Electricity bill of your registered office
- No objection certificate from the owner
FAQ (Frequently Asked Questions)
The partnership business is regulated under Indian Partnership Act, 1932. Which prescribes possibility of two types of the firm, unregistered firm, and registered firm. An unregistered firm is formed by entering into an agreement between two competent persons, known as partners, where the firm is not registered with the registrar of firms. Whereas the firms which subsequently get registered with the registrar of firms by submitting the copy of partnership deed and KYC of partners and the registered office is known as the Registered Partnership Firm.
Yes, a partnership firm can be converted easily into a Limited Liability Partnership or a Private Limited Company. The partnership is an old method of doing business; we always recommend to start a business in the Private Limited form
Unlike Limited Company or LLP, there is no need to file the annual return for a partnership firm. However, income Tax Return shall be necessary to be submitted at the end of the financial year and within Due Date of filing. There is no provision of audit under the partnership, Act hence a firm does not require to get its books audited. However, if the turnover crosses 2 Crore, then tax audit is mandatory.
A partnership firm needs to pay income tax at 30% of total income. If the total income passes 1 crore then a partnership firm have to pay income tax surcharge on the amount of income tax at the rate of 12%.In addition to the income tax and surcharge, a partnership firm must pay education cess and secondary higher education cess. Education Cess is applicable on the amount of income tax and the applicable surcharge at the rate of 2%. Secondary and higher education cess is applicable on the amount of income tax and the applicable surcharge at the rate of 1%.