Partnership Firm Registration

"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. Persons who have entered into partnership with one another are called individual "partners" and collectively "a firm", and the name under which their business is carried on is called the "firm-name". Partners are bound to carry on the business of the firm to greatest common benefit, to be just and faithful to each other, and to render true accounts and full information of all things affecting the firm to any partner, his heir or legal representative. Every partner shall indemnify the firm for any loss caused to it by his fraud in the conduct of the business of the firm. The terms of the Partnership Agreement can be varied to suit the interests of the partners and can even be made contrary to the Indian Partnership Act, 1932. The partnership is the most popular form of organization to carry business in India.

Eligible persons to enter into Partnership

The following can enter into a partnership and becomes a partner:

Individual: Any person who is competent to enter into a contract can become a member of a partnership firm.
Partner of any other partnership firm: A Partnership firm cannot be the partner of any firm but its partner can enter into a partnership with another person.
Hindu Undivided Family: Karta of HUF can be a partner in a partnership firm
Company: A private limited/public limited company being an artificial legal person can be a partner in a partnership firm if authorized by an objects.

Key Points to the Partnership Firm

Essential elements that are the key necessity of any partnership firm are:

A partnership firm is voluntary and contractual. Since partnership is the result of a contract, a minimum of two peoples are necessary to constitute a partnership. Partnership Agreement jot down the following terms:
Responsibilities of partners;
Duties and obligations of partner;
Profits and loss sharing ratio and rate;
Other matters such as withdrawal, capital contribution ,dissolution and such other clause as the partner may consider of utmost importance to include in the partnership agreement.
Profit is shared amongst partners as per the capital contributed by the partners or at any rate agreed upon between them. Thus sharing of loss is not an essential element of the agreement, but in case of damage or loss, the same has to be borne in profit-sharing ratio.
One of the most important element in any partnership is that there must be a certain goal/ objective for carrying on the business by all the partners or any one of them acting for all. That there should be a mutual agency. There cannot be a partnership if there is no intention to carry a business/ goal.

Advantages of Partnership Firm

Partnership Firm is best for small business.
Maintenance of Partnership firm very low in cost with minimal compliance requirement as compared to other form of firm.
Provides the benefit of freedom to work in any field.
There is no requirement of audit.

Steps for the Registration of Partnership Firm

Select the name: Partners can select any name as per their discretion. However the selected name should not be identical to the already existing registered name.
Prepare Partnership Agreement: One of the important step is to create a partnership agreement/deed. The terms and conditions to be jot down in an agreement are as per the discretion of partners. Howe it is on the partner to get it down orally or written. However written deed is advisable in case of future conflict arise. Written agreement must have following important points which the partners must consider:
Full details of partners such as name address etc
Name & Complete address of the firm
Nature of the proposed business
Date of entering into an agreement i.e., date of commencing the business
Duration of partnership
Capital Contribution;
Profit and loss sharing ratio;
Management and administration
Tax Implications;
Withdrawal;
Dissolution;
Interest on capital, loan, etc;;
Salaries and commissions;;
Retirement, death, and admission of partners;
Arbitration;

Submit the Application to the Registrar:

Registration of a partnership is a very easy and simple process. It’s not complicated like Company registration. An application form along with specified fee has to be paid with necessary documents to be submitted to the registrar:

Form-1 for applying for registration of partnership;
Scanned copy of Aadhar card, PAN Card & Voter ID of partners (Self attested);
Certified original partnership Agreement as drawn up by the partners.;
Proof of registered address of firm (Property papers in case of owned premise or rent agreement/ lease deed in case premise is rented or leased);

Certificate of Registration:

If the Registrar finds the application in order and documents are correct, he will register the partnership firm and issues the Certificate of Registration.

Is Registration of Partnership firm mandatory?

Unlike the company, registration of a partnership firm is not compulsory. It’s the wish of partners to get it registered or not. However, a registered firm can enjoy certain benefits over unregistered firm such as:

Partner can file a case against firm or any other partner.
Firm can file a case in a court against third party.
Registered firm can always claim a set-off.

Pricing Tables

Pricing of Partnership Firm

Silver

^Rs.4199.00all inclusive fees

Partnership Deed
Stamp Duty upto Rs. 1 Capital
ESI & PF REGISTRATION
PAN & TAN
GST Registration
Business Management Guidance
One Bank Current Account Opening
GST Invoicing Software
3 months GST Return filing
Import and Export Code
Udhyam Registration

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Gold

^Rs.6999.00all inclusive fees

Partnership Deed
Stamp Duty upto Rs. 1 Capital
ESI & PF REGISTRATION
PAN & TAN
GST Registration
Business Management Guidance
One Bank Current Account Opening
GST Invoicing Software
12 months GST Return filing
Import and Export Code
Income Return Filing
Udhyam Registration
TDS Return Filing

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Diamond

^Rs.10999.00all inclusive fees

Partnership Deed
Stamp Duty upto Rs. 1 Capital
ESI & PF REGISTRATION
PAN & TAN
GST Registration
Business Management Guidance
One Bank Current Account Opening
GST Invoicing Software
12 months GST Return filing Income
Import and Export Code
GST Annual Return
Udhyam Registration
TDS Return Filing
Financial Statement Preparation
Income Tax Return Filing

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