Register a
Partnership Firm
Just @ 7,999/-
Partnership Agreement GST Registration PAN Card
Benefits of Setting up a Partnership Firm
Partnership Firm can be formed easily without any compulsory legal formalities. It is not necessary to get the firm registered. A simple agreement or partnership deed (oral or in writing) is sufficient to create a partnership. Partnership Business can be very well managed by all the partners as they take interest in the daily affairs of business because of the ownership, profit and control. Further, due to the limited number of partners there is flexibility in the operations of business as the partners can amend any objectives or change any operations any time by mutual consent. Some of the reasons of setting up Partnership are:
- A renowned & commonly used business model
- Partners operates Business and risks & rewards are shared among partners
- More number of members in firm bring larger resources for the business
- The number of compliances are on lesser side in case of Partnership Firm.
Documents Required for Partnership Firm Registration
Identity Proof of Proposed Partners
PAN Card / Copy of Passport
Photographs of Proposed Partners
2 Passport Size Photographs
Address Proof of LLP’s Registered Address
Rent Agreement / Sale Deed
Address Proof of Proposed Partners
Passport / Aadhar Card / Driving License
How Does it Work ?
Provide Required Data
Make Payment
Draft partnership Deed
Apply GST & PAN
Apply Registration
Obtain Registered Deed
Assurance by Apana Tax.com
Frequently Asked Questions
Partnership is an agreement between two or more than two people to share the profits of a business. The agreed business can be carried on together by all the partners or some of the partners or any one partner representing the others. The Tenure of the partnership can be for a fixed period of time OR it may be limited to a specific project and will dissolve after completing the project OR it also may be dissolved at will of the partners.
Registration of a prtnership firm is not necessory, There is no provision under the partnership Act, 1932 which mandates the registration of partnership. However, the act itself provides for the procedure of registration of firm.
Hence, the registration is optional but highly recommended, the firm should get registered in order to bring certainty in the relationship of partners and the firm person
No, it is not necessary to have a written partnership deed, Partnerships can also be oral. The contract act does not makes it necessary to have the agreement in writing. However, it is always prudent to make a partnership deed to produce to the bank, income tax authorities and to clients with whom the partnership firm deals with. Apart from serving as a reference document a written partnership deed also helps in reducing conflict and confusion in due course of time.
Hence, It is always recommended to have a written partnership deed to form a partnership firm.
There must be minimum of 2 persons to form a partnership firm. If the firm is intended for financial transactions maximum of 10 and for other purposes maximum of 20 persons can form a firm. if partner become more that 20 partners, It has be to resitered as a Company.
To form a partnership firm, the following elements are necessary:
1. There must be an agreement between two or more persons.
2. The agreement must be to share the profits of the business.
3. All partners together, or any one, on behalf of the others must carry on the business.
Following are the basic detail which are required to apply for a partnership firm.
a) Name of the Firm;
b) Main place of business;
c) Other places of business;
d) Date of joining of each partner;
e) Each partner's name and address;
f) All the partners or their authorized agents shall sign the application
Capital is the initial amount in cash or kind contributed by the partners to start the business. It is not necessary for each partner to contribute equally to the capital. Contribution is based on the agreement among all the partners.
It is not compulsory for a partnership deed to be in writing. Partnerships can also be oral.
Partners must be major (above the age of 18), should be sane and should not be disqualified by law from entering into a contract.
Each partner of a partnership firm mainly has right
to take part in the business.
to share the profit or loss of the business.
to inspect and make copies of the books of the firm.
to receive remuneration for taking part in the business if specified in the partnership deed.
to receive interest on capital if specified in the partnership deed.
Each partner is mainly required to
carry on the business.
be just and faithful to each partner.
disclose true accounts of the firm.
furnish full information of all things affecting the firm.
A partner cannot do the following without the consent of the other partners:
He can not Submit a dispute relating to the business to arbitration.
He alone can not Open a bank account on behalf of the firm in your own name.
He is not eligible to Enter into partnership with an outsider on behalf of the firm.
He is not eligible to Compromise or relinquish any claim or portion of a claim of the firm.
He can not Withdraw a suit or proceeding filed on behalf of the firm.
He can not Admit any liability in a suit or proceeding against the firm.
He can not Acquire or transfer immovable property belonging to the firm.
A partnership firm can be dissolved in any of the following ways:
By Consent:
A partnership firm can be dissolved at any time if all the partners decide to dissolve it. This is known as dissolution by consent.
By agreement:
Partnership can be dissolved according to the contract between the partners. The partnership deed should contain the provision of dissolution. The consent of all the partners is not necessary.
By compulsory dissolution:
A firm is compulsorily dissolved:
1. When all the partners are declared insolvent.
2. When all the partners but one as insolvent.
3. When the business becomes illegal due to changes in laws.
On Completion of Objective:
A firm may be dissolved due to any of these following events:
1. If the firm has been constituted for a fixed period then on the expiry of that period.
2. If the firm has been constituted for one or more project, then on the completion of that project.
3. On the death of the partner.