Partnership Registration

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Partnership Registration

What is Partnership Firm Registration?

Partnership is a company where two or more people decide to share the profits of a corporation carried out by them all and by any of them working for all. It is generally done in legal terms. The percentage of ownership varies and depends on some factors.

As a result, the partnership arrangement is a company that enables joint ownership of a corporation. In short, a partnership is a firm that allows joint ownership of a business.

Some certain rules and regulations must be followed when a partnership firm is incorporated. The registration of a partnership firm is not compulsory under the Indian Partnership Act, 1932, but only Maharashtra has made its registration compulsory.

A partnership may be registered at any time, i.e. several years after its formation. Registration or not registration of a partnership firm has its own advantages.

Process of Partnership Registration

Complete our Partnership Form

You need to fill our simple Partnership registration form and upload documents.

Verification of Documents

For further procedures, our experts will verify the details provided by you.

Partnership Deed Drafting

We will draft your partnership agreement after sending your papers. 2 WORKING DAYS

Apply for TAN & PAN

We will create and file all required documents with ROC.

2 WORKING DAYS

Get Your Certificate

Your work is completed for the Partnership Registration.

CONGRATULATIONS

Documents Required for Partnership Registration

The following documents are required for the registration of a Partnership Registration firm:

1. Form 1 declaration with approved charges

2. Copy of the Partnership Deed truely notarized specifying the following:

a)The firm-name

b)The nature of business of the firm

c)The place or principal place of business of the firm

d)The names of any other places where the firm carries on business

e)The date when each partner joined the firm

f)The names in full and permanent addresses of the partners

g)The duration of the firm

3. Proof of ownership or lease of your business location (e.g. Business Place Rent / Lease / License Agreement or Electricity Bill / Water Bill )

4. Copy of PAN Card of partners

5. Copy of Aadhaar Card/ Voter identity card

Characteristics of Partnership Registration Firm

Established based on a Contract

A partnership company shall be established on the basis of a contract between two or more parties agreeing to enter into a relationship. The terms and conditions governing such a partnership are set out in a document known as the Partnership Deed.

Nature of a business activity

The partnership model of business activity can be formed only on the basis of the nature of business activity. The company can be anything and include any trade, sector or occupation.

Profit-sharing and loss between the partners

Partners are entitled to share the profits and to bear the losses, if any, in the course of the company.

Partnership Relationship

Existence In partnership business, all partners or any partner acting on behalf of others may participate. It means that each partner is an in-house manager who is able to operate alone. He can also serve on behalf of other partners as their representative.

Total Partner Liability

For all losses incurred throughout the relationship, each partner is personally liable. In other words, they can use their personal assets to pay off the outstanding debts of the partnership company.

No compulsory registration

The registration of an entity's form of partnership is not necessary. The partners may, however, choose to register the company with the company registrar.

Collective management

Every partner is allowed to participate in the company's daily operations. Participation in the company's day-to-day operations, however, is not compulsory for each partner, but the business partners must agree to take the required decisions from other partners.

Partnership relationship term

The partnership company may continue as long as the partners wish. However, if required by law, if any of the partners dies, retires or becomes insolvent, the partnership can end. But, after working out the outgoing partner's due share, the remaining partners may continue to do business under the same name.

Share Transferability Limitation

A partner is unable to transfer his share to any other party. However, he can do so with the permission of other partners.

  • Basic
  • 4,699/-
  • Basic Partnership Deed Drafting By A Lawyer
  • Gst Registration
  • Expert Pro Support
  • Order Now
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  • Standard
  • 10,699/-
  • Basic Partnership Deed Drafting By A Lawyer
  • Gst Registration
  • Deed Registration
  • Expert Pro Support
  • Order Now
  • Premium
  • 15,699/-
  • Basic Partnership Deed Drafting By A Lawyer
  • Gst Registration
  • 3 Months GST Return Filing
  • Deed Registration
  • Expert Pro Support
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FAQ(Frequently Asked Questions)

A partnership is an association/relationship between two or more persons who join to carry on as trade or business and share profits.
They are General partnership: equal division of responsibilities as well as profits. Joint ventures: the partnership only exists for a specified period of time or for a specific project and partners share equal responsibilities Limited partnerships: consist of partners who maintain an active role in the management of the business, and those who just invest money and have a very limited role in management liability is limited to their initial investment.
There are no formalities for general partnership. The features include No written agreement is required There must be two or more people Doing trade or business and Sharing profits.
It is better to have a written document to prevent internal conflicts or fights (about profits, direction of the company, etc.) and give the partnership smooth direction.
If there is no written agreement, it is not necessary that partners draw salary, share profits and losses equally. Partners must be loyal to the other partners and must not make themselves rich at the expense of the partnership. Partners must provide financial accounts to the other partners. One drawback of a partnership is that the other partners are bound to contracts signed by each other on behalf of the partnership. If there is a written partnership agreement, major business decisions, how profits and losses will be split, and how much control each partner maintains, all will be done accordingly.
A written agreement is not mandatory However, since partners share profits equally in the absence of a written agreement, they could run into situations where one feels that he/she is doing all of the work, but the other partner is still getting half of the profits. Hence, it would be smart to cover major issues related to business in writing, to avoid problems in future.
Partnerships have unlimited liability. It means that if the partnership can't afford to pay creditors or in case business fails, the partners are individually responsible to pay for the debts and creditors can go after personal assets such as bank accounts, cars, and even homes.
In a partnership, creditors can sue partners personally to repay business debts In case of a corporate entity, such as a limited liability company (LLC) or an S-corporation, the debt trail ends with the business or personal assets of partners are safe.
Personal income tax filings of individual partners are used to pay taxes. As a partner, income is through share of the profits (or a loss if the partnership is losing money), and this income is reported during personal taxes filling. The partnership reports profits and losses to the IRS on a special form (informing IRS about income), and pay the taxes on that portion.
In the absence of a written agreement, partnerships end when one partner gives notice to leave the partnership. In presence of a written agreement, then termination takes place as outlined in the agreement.
Easy to establish Raising funds may be easier with more owners Providing for easier tax reporting as profits go right into partners' pockets, Better decision making as all the partners take place in the process Flexibility in operation as partners can take decisions as per the need Employees can become a partner Sharing of risks as all partners share the risk
Individually liability for business debts of partners Subject to the actions of other partners In case one partner leaves the partnership can end, hence partnership has limited life Shared decision making means no full control, which could lead to disagreements No transferability of shares to outsiders, without the consent of other partners