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A Partnership Firm is the easiest type of business structure where two or more people come together to share profits in an agreed ratio.
Get registered with us Online. Price starting from INR 3499/- only.
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What is Partnership Firm ?
All you need to know about Partnership Firm
Partnership Firm is the most suitable type of business structure as it is very easy to form and a minimum of two people are required to form a Partnership Firm online. In Partnership firm, there are very minimal compliances in comparison to other business entities. In simplified language, we can say that partnership creates a relationship between two or more people who have agreed to carry on a business for profit and these people are known as partners.
To setup, a Partnership Firm in India, partnership firm registration is not necessary however it is always advisable to register a partnership firm to avail the legal benefits which cannot be availed in case partnership firm is not registered. Partnership Firm registration is the complete discretion of partners. Enterslice can help you in partnership firm registration in India; for this, you just need to provide certain documents such as documents related to place of the firm, documents related to partner for identification, the motive of setting up partnership firm, profit sharing ratio and duration of the partnership.
Flexible plans with no surprises
STARTER
₹ 3499/-
(All Inclusive)
- Drafting Partnership Deed
- GST Registration
- PAN
PREMIUM
₹ 4499/-
(All Inclusive)
- Drafting Partnership Deed
- GST Registration
- PAN
- SSI/MSME/Udyog Aadhar Registration
Add to Cart
Popular
ADVANCED
₹ 12499/-
(All Inclusive)
- Drafting Partnership Deed
- GST Registration
- PAN
- SSI/MSME/Udyog Aadhar Registartion
- Trademark Application (1 application 1 class) (start ups, proprietorship & small business)
- 1st Income Tax filing upto turnover of Rs. 30 Lakh
- 100 Letterhead
- 100 visiting card for 2 Partner
Benefits of Registering a Partnership Firm
No Minimum Capital
There is no limit on the minimum capital for starting a Partnership firm. Therefore, a Partnership firm can be started with any amount of minimum capital.
Tax advantages
Partnership firm is a legal tool for better tax planning. The firm is a separate entity can offer remuneration and interest to working partners Remuneration to partners.
Easy to Register
Partnership Firm is very easy to form. It comes into existence merely by a Partnership Deed. Its registration is not mandatory. Even after formation, there are no annual filings to be done except Income tax returns.
Risk Sharing
Partnership firm enables sharing of risks by more than 1 person. This ensures diversified financial risks.
Bigger Resource
As a partnership firm requires a minimum of two partners, there’s an availability of larger resources as compared to a proprietorship firm.
FDI (Foreign Direct Investment)
NRIs Can invest on non-repatriationbasis otherwise RBI permission isrequired
Documents Required For Partnership Firm
List of Documents
♦ Photograph of all the Partners
♦ PAN Card of all the Partners
♦ ID Proof of all the Partners (Driving License/Passport/Voter ID/Aadhar Card)
♦ Electricity Bill, or any other utility bill for the address proof of the Registered Office
♦ Copy of bank statement
♦ Email ID and mobile number
♦ Rent agreement on the name of the company (No Objection Letter (NOC) from the landlord with his/her consent to use the office as a registered office of a company must be submitted)
Minimum Requirement to register Partnership Firm
♦ Minimum two persons are required
♦ Duly attested and notarized partnership deed
♦ The Partner must be an Indian citizen and a Resident of India. Non-Resident Indians and Persons of Indian Origin can only invest in a Proprietorship with prior approval of the Government of India
♦ Specimen of Affidavit
Fill Simple Checklist
A Compliance Manager will get in touch with you to obtain your documents along with a simple checklist. You need to fill up that checklist and submit along with your documents for processing. Our expert team will verify documents and proceed with registration formalities. All throughout the process, your dedicated Compliance Manager will keep you updated on the progress of Company Registration.
Creation of Partnership Deed
Once you submit your documents.The first step is to select the name of the partnership firm and make sure that name is not infringing on the existing trademark.The next step is to create a Partnership Deed which is an agreement among the partners consisting of terms & conditions. Partnership deed must be executed on stamp paper and it should be properly notarized.
Partnership Firm Registration
The last step in connection with partnership firm registration is the filing of an application in Prescribed form as per the state laws along with the necessary documents such as an affidavit, partnership deed and proof of principal place of business. After submission of an application it shall be verified by the registrar and after satisfaction, it will record the partnership firm in its database.
FAQs On Partnership Firm
How many partners are required in a Partneship Firm?
A minimum of two Persons is required to start a Partnership firm. A maximum number of 20 Partners are allowed in a Partnership firm.
What are the requirements to be a Partner in a Partnership Firm?
The Partner must be an Indian citizen and a Resident of India. Non-Resident Indians and Persons of Indian Origin can only invest in a Proprietorship with prior approval of the Government of India.
What is the capital required to start a Partnership Firm?
There is no limit on the minimum capital for starting a Partnership firm. Therefore, a Partnership firm can be started with any amount of minimum capital.
Is my Partnership firm have a separate legal identity?
No, a Partnership firm has no separate legal existence of its own i.e., the Partnership firm and the partners are one and the same in the eyes of law. Liability of the Partners is also unlimited, and the partners are said to be jointly and severally liable for the liabilities of the firm. This means that if the assets and property of the firm is insufficient to meet the debts of the firm, the creditors can recover their loans from the personal property of the individual partners.
Is it mandatory to register Partnership Firm with the registrar?
It is not mandatory to apply for a partnership firm in India however it is always advised to get it registered with the Registrar of firms as it gives the legal status to the firm.
Is it required to visit any government department to register my Partnership Firm?
No, you would not be required to visit any department, all the process shall be done online. You would only be required to be physically present to notarize the partnership deed.
With which government authority Partnership Firm registration application is submitted?
The Partnership Firm registration application is submitted with the Registrar of Firms who has the jurisdiction over the place of business of the partnership firm. On the receipt of the application registrar, the firm will scrutinize the documents issues the Certificate of Registration of Partnership Firm.
Can I later convert my Partnership firm into a Company or LLP?
Yes, there are procedures for converting a Partnership business into a Company or a LLP at a later date. However, the procedures to convert a Partnership firm into a Company or LLP are cumbersome, expensive and time-consuming. Therefore, it is wise for many entrepreneurs to consider and start a LLP or Company instead of a Partnership firm.
Is it required for Partnership Firm to file annual return to the registrar of firm?
No, it is not required for Partnership Firms in India to file annual return unlike Limited Liability Partnership (LLP) while it is mandatory for partnership firms to file Income Tax Return before the due date. In partnership Act, 1932 there is no such provision of audit, therefore, it is not required for partnership firm to get its books of accounts audited. However, the tax audit is mandatory if the turnover is more than Rs. 2 Crore.