Partnership Firm Registration

Partnership, the word itself suggest the meaning of the term where there is an involvement of two or more individuals, it forms partnership but here in legal world people don’t just come together to hangout or have tea party, they form a relationship to earn profit and tackle loss, if any. Partnership in business world is a term well known and implemented by many to form involvement of two or more people in order to earn profit and bear loss thereof divided according to agreed ratio. But, unlike other companies, partnership doesn’t have liberty of having separate entity of its own.

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Partnership firms in India are directed by the Indian Partnership Act, 1932. As per Section 4 of Indian Partnership Act, 1932 “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 individually, “partners” and collectively “a firm”, and the name under which their business is carried on is called the “firm-name”.

9 Things you need to know about partnership firm:

  1. Number of Partners: Minimum 2 and maximum 20.
  2. Transfer of Consent: None of the partners are liable to do it without the consent of other partners.
  3. Contractual Relationship: All the partners are bound by contract known as partnership deed.
  4. Legal Status: No distinct status, both partners and entity are combined unlike other companies.
  5. Voluntary Registration: Registration of partnership firm is not mandatory thus to enjoy its many benefits people opt registration.
  6. Unlimited Liability: All the partners are jointly held liable for the debt and losses which must be shared equally by each partners because it has unlimited liability.
  7. Competence of Partners: Each and every partner willing to join must be competent enough to enter in a partnership deed. None of the partner should be minor (there can be exceptions), insolvent or lunatic.
  8. Sharing of Profit And Loss:  Both profit and loss are shared on agreed ration while forming partnership if not decided than the profits and loss must be shared equally.
  9. Principal-Agent Relationship: This relationship is built on the trust and faith among partners which hold the interest of the firm where business of the firm may be acted by all or anyone partner. Accordingly, if all partners acts as an agent when one is working o behalf of other partners otherwise the one is a principal when others are working on behalf of him.

BENEFITS OF PARTNERSHIP FIRM:

  1. Name of the firm.
  2. All Partners KYC documents (PAN and Aadhar Copy).
  3. Proof of principal place of business (ownership documents or rental/lease agreement).
  4. Nature of business.
  5. Capital to be contributed by each partner.
  6. Profit & loss sharing ratio among the partners.
  7. Salaries, commissions or any other amount to be payable to partners.
  8. Rights of each partner, including additional rights to be enjoyed by the active partners.
  9. Duties and obligations of all partners.

ENROLLMENT PROCESS THROUGH SMARTBIZGURU:

Moreover, after the registration process we also help in various other formalities which are required to enjoy the boons of business in partnership firm such as: 

Document required

  1. Pan Card Application; 
  2. Open Current Account;
  3. GST Registration;
  4. Other Government License and Approvals.

Smartbizguru also helps in posting compliance of the Company like appointing an Auditor, Preparing Finance of the Company, Filing of GST Returns and Other Returns to Government Authority, Registrar of Company (ROC) Compliances, and Consultation on Digital Market solutions. 

You’re just one step away from enjoying all of these services from the comfort of your home!

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