OVERVIEW

Partnership Firm:

A partnership firm is a business or firm that falls under the Indian Partnership Act, 1932, where two or more two members start their business or firm.
It is a legal relationship formed between two or more persons with the help of a partnership deed to establish a business. According to IPA1932, The maximum range of joining a Partnership firm is 20.

In a Partnership firm, Partnership deeds play an important role to run a business, which is generally known as the basic documents legal document of a partnership firm. It is a legal agreement, which should be registered with the Registrar of Firm (RoF). Before proceeding in RoF, the Partnership deed is prepared on stamp paper.

Content of partnership deed.

Partnership firm name

Aim of business

Address of Partnership firm.

Name and address of all partners.

Date of commencement of business.

Duration of the Partnership firm.

Capital contribution of partners.

The profit-sharing ratio of each partner.

Salary and Commission of each partner.

Responsibility of partnerships.

Management of Account and Audits.

Regulation on death, retirement, or joining of new partners.

Note – Above points are general clauses, there are some other clauses too.

The benefit of Partnership Firm:

Digital signature or DIN: This is the best advantage of a Partnership firm as it is relaxed from signature approval or (DIN) Director Identification Number.

Annual Audit: In a Partnership firm, annual auditing is not required ministry of the Corporation.

Account Filing: No need for filing of Balance sheet and Account except Income Tax.

Perpetual succession: According to the Indian Partnership Act, 1932, In a Partnership firm, perpetual succession is not required. So they can be winding up easily.

Minimum capital and Profit: In a Partnership firm, no minimum capital is required and profit is distributed equally among partners of the firm.

The benefit of registration: No unregistered company can file a case on a registered Partnership firm.

Registration of Company is Simple with Vakilkaro

VAKIL KARO legal experts help to register the proprietorship firm and its time to time compliance. VAKILKARO has the legal expertise in other Registrations, Legal Compliance, PAN card &TAN card of the firms or company, ESI & EPF of firms or companies as well as like OPC, private limited company, limited liability partnerships.

Documents required to register a Partnership firm:

Partnership deed. Where the purpose of the firm has been stated clearly and I should be signed by all the partners in a Partnership firm.

PAN card of the Partnership firm.

Address Proof of the partnership firm. The details of the complete address of the area, where the business will run.

Identity proofs of all the business partners.

Partnership firm registration certificate (if the partnership has been registered): If the firm is registered with the Registrar of Firm (RoF), then submit this document.

Any central or state government registration document.

Process of registration of Partnership Firm in India:

1. Name approval and Partnership deed.

 Submit the Name of the firm and draft the partnership deeds with every partner’s signature.

2. Apply for a PAN card for a Partnership firm.

3. Application for registration form and Affidavit.

The client needs to submit the required documents and registration application.  

4. Payment for a stamp.

You need to pay the required fees and stamp duties for the firm.

5. PD finalization and Certification in RoF:

FAQ in partnership firm:

1. Can a person below 18 years become a partner in a Partnership firm?

Yes, a minor can be a partner in a Partnership ffromm in the perspective of profit view, but he/ she will not be counted.

2. How much time consuming to register in a Partnership firm?

Basically, it takes around 12 to 14 days to complete the whole process depending upon the specific state.

3. Can we join a new partner in a Partnership firm?

Yes, a new partner can be joined in case of requirement, succession, or the death of the partner.