Partnership Firm Registration
- Two or More Individual Person Can Start Partnership Business with Partnership Firm Registration in Ahmedabad, Gujarat. We Provide Partnership Firm Registartion Service Consultancy across India.
- According to Mutual Understanding, Partners Required to Make Partnership Deed.
- Simple Way to Start Joint Partnership Business in India.
LET'S TALK
Request a Free Quote
What is a Partnership Firm?
A partnership firm is a type of corporate organisation where two or more people formally agree (via a partnership deed) to manage or run a business together with the goal of splitting the profits.
The Partnership Act of 1932 is the law that regulates partnerships in India.
The Partnership Act of 1932, section 4, defines a partnership as “the relationship between two or more persons who have entered into an agreement with each other to carry on a business and share its profits carried on by everyone or any one of them acting for everyone.”
Individuals who have formed a partnership are referred to as partners, and the company as a whole is called a “Partnership Firm.” The name under which their business is conducted is called “Firm Name.”
The article above states that a partnership firm is made up of the following fundamental components:
ADVANTAGES OF A PARTNERSHIP FIRM
REQUIREMENTS TO FORM THE PARTNERSHIP
| Features | Partnership Firm |
|---|---|
| Definition | A written legal agreement between two or more entities to run and manage a business. |
| Ownership | Minimum 2 partners Maximum 20 partners |
| Documentation | Partnership deed |
| Governance | Under Partnership Act, 1932 |
| Statutory Audit | Not required |
| Annual return filing | It is mandatory for partnership firm to file income tax return regardless of the income or loss. |
| Promoter Liability | Unlimited Liability i.e., every partner is accountable personally for the losses of the partnership firm. |
| Compliance | Low |
| Profit distribution | Profit must be split among the partners in accordance with the provisions of the partnership deed. |
| Company name | Should be unique |
| Registered with | The Registrar Of Firms |
Documents required for Partnership Firm Registration
- Utility Bill of the proposed registered office
- No Objection Certificate from the premises owner
- Notarized rental agreement in English (if rented property)
- Copy of property papers(if own property)
- Proprietorship
- Partnership firms
- Private Limited Company
- Public Limited Company
- Limited Liability Partnerships
- Self Help Groups,
- Hindu Undivided Family
- Society
- Trust
- Others
ELIGIBILITY FOR MSME REGISTRATION:
MSME(Micro, small and medium enterprises) registration or Udyog Aadhar registration can be obtained by any kind of business entity;
| Classification | Investment and annual turnover |
|---|---|
| Micro | < Rs.1 Crore & < Rs. 5 Crore |
| Small | < Rs. 10 Crore & < Rs. 50 Crore |
| Medium | < Rs. 50 Crore & < Rs. 250 Crore |
Manufacturing, wholesale, service industries, and retail trade are covered and are eligible to apply for MSME registration except for the motorcycles and motor vehicles wholesale and retail trade.
Registration of MSMEs is completely online and the Udyam Registration portal ( udyamregistration.gov.in ) is the official portal for registering MSME’s.
Procedure for Income Tax Return Filing of Partnership firm;
Partnership firm needs to file their return in Form ITR 5. This form can be filed online with the help of the DSC ( Digital Signature Certificate ) of the designated partners on the Income Tax website.
The procedure to file Income Tax Return is completely Online. This involves the following stages:
Steps for online registration of a partnership firm:
Step 1:Apply for Registration
Apply for registration and submit the application to the Registrar of firms. The application should contain the name and address of the proposed firm along with the name and address of each partner, their respective joining dates, and the establishment year of the firm.
Step 2:Reserve name
Reserve a name for the partnership firm: Choosing a name for the partnership firm holds a special significance in a partnership firm registration. There are a few things to keep in mind while selecting a name such as a name should be unique and original and it should not have a conflict of interest with any existing firm.
Step 3:Create a partnership deed
Create a partnership deed covering all the matters that entail the mutual rights, obligations, and liabilities of the partners in the management and conduct of the firm’s affairs. General details that are required in a partnership deed are
Step 5:Stamping of Deed
Take a printout of the partnership deed on a stamp paper and it should be duly signed by all the partners and notarized.
Step 6:Obtain PAN and TAN
Concerned department will issue the physical copy of the partnership firm PAN card within a few days.
Step 7:Open a current bank account
Is GST registration necessary for partnership firms?
GST registration is mandatory for each partnership firm whose turnover crosses 40 lakhs every year. However, registration may be required in some cases even if the firm’s turnover does not cross the predefined turnover. For example, for any e-commerce firm, it is essential to have a GST certificate.
GST registration for partnership firms
To take advantage of the input tax credit, any company that buys, sells, or provides goods and services must register under the Goods and services tax(GST).
Registration for GST can be done online from the website. To take advantage of the input tax credit, any company, firm, or individual that buys, sells, or provides services must register under the Goods and Services Tax (GST).
GST registration can be done online at www.gst.gov.in, from there a Temporary Registration Number(TRN) is generated for the application.
Documents required for GST registration of a partnership firm
After the application is submitted, an Application Reference Number(ARN) is generated from where the status of the application progress can be tracked. Once the request is approved by the tax officer, then the Certificate of Registration is issued online.
GST registration process for a partnership firm:
FAQ's
Is it important to draft a partnership deed?
No, it is not necessary, however drafting a partnership deed is always recommended because it aids in taxation and other legal matters.
