A Partnership Firm is a popular form of business constitution for businesses that are owned, managed and controlled by an association of people for profit. Partnership Firms are relatively easy to start, prevalent amongest small and medium sized businesses in the unorganized sectors. There are two types of Partnership Firms, registered and unregistered Partnership Firm. It is not compulsory to register a Partnership Firm; however, it is advisable to register a Partnership Firm due to the added advantages. Partnership Firms are created by drafting a Partnership deed amongest the Partners.
Partnership Firm Registration Certificate
Required Documents for Bank Account Opening
PAN Card & TAN
Logo / Brand / Trade Mark Registration
Prepare the Partnership Agreement and Application along with all the Annexure
Submit the Application along with the required documents through E-Seva for Registration
Follow up with the department (Registrar of firms) and obtain certificate of Registration of Partnership Firm
Apply for PAN Card & TAN
Name of the Proposed Partnership Firm
Main Business Activities of the Proposed Partnership Firm
There must be Minimum of 2 Partners
Address of the Proposed Partnership Firm to be registered (Municipal Tax Receipt and Power bill (Recent) both are required and address must be clearly visible)
Rental Deed if rented premises and No Objection Letter, if it is not owned from the Owner of the Premises to be used as Registered Office
Passport Photos – 3 of each Director and Promoter
Email & Mobile No of all the partners (for mentioning in Applications & Other Documents for Registration)
ID & Address Proofs of the partners of the Proposed Partnership Firm
|Minimal Compliance||Easy to Start||Relatively Inexpensive|
General Partnerships do not need to appoint an auditor or, if unregistered, even file annual accounts with the registrar. Annual compliances are also fewer as compared to an LLP. General Partnerships do need to file Income Taxes depending on turnover, service and sales tax.
It can be started with just an unregistered Partnership Deed in 2 to 4 days; registration, however, does bring a few advantages. It would enable you to file suits in court against another firm or partners in the firm for the enforcement of rights arising from a contract or right given by the Partnership Act.
A General Partnership is cheaper to start than an LLP and even over the long-term, thanks to the minimal compliance requirements, is inexpensive. You need not to hire an auditor. For example, This is why, despite its severe shortcoming (unlimited liability), home businesses may opt for it.
A Partnership Firm is a business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a partnership deed that may or may not be registered. In such a business, the members are individually partners and share the liabilities as well as profits of the firm in a predetermined ratio.
No, registration of a partnership firm is not necessary. However, for a partner to sue another partner or the firm itself, the partnership should be registered. Moreover, for the partnership to bring any suit to court, the firm should be registered. For this reason, it is recommended that larger businesses register the partnership deed.
It takes 5 - 8 days to register a Partnership Firm.
A Partnership Firm must have at least two partners. A Partnership Firm in the banking business can have up to 10 partners, while those engaged in any other business can have 20 partners. These partners can divide profits and losses equally or unequally.
Form No. 1 (Application for registration under Partnership Act)
Original copy of Partnership Deed, signed by all partners
Affidavit declaring intention to become partner
Rental or lease agreement of the property/campus on which the business is set
There is no minimum capital required by law for establishing a general Partnership Firm, because the company assets are not distinguished from the partners’ assets, given that the partners are liable for the company’s obligations with all their personal assets.
NRIs and Foreign Nationals are not allowed to invest or start a Proprietorship or Partnership or One Person Company in India, while FDI in LLP requires prior approval from the Reserve Bank of India.
As per provisions of Section 11 of Companies Act, 1956 there cannot be more than 10 partners in a firm established for carrying on banking business and not more than 20 persons in a firm formed for the purpose of carrying on any other business for profit.