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1. Collect the documents relevant for registration.
2. We shall apply for registration on your behalf.
3. You can get registration in no time.
Introduction
You must have heard about the quote, "1+1=11". This is what perfectly describes a partnership. Two people come together to create a business providing synergy and enhancing capacity of each other. Thus, to overcome the limitations of sole proprietorship and Hindu Undivided Family, Partnerships are formed. There can be a situation where one person has the capital but he won’t be having the business management skills and on the other hand, one would be having no capital but he has skills. So, both of them can come together and start a business.
Section 4 of Indian Partnership Act of 1932 defines partnership as "the relation between person who has agreed to share profits of a business carried on by all or any of them acting for all.
"Partnership is the relation which subsists between persons, who have agreed to combine their property, Labour or skill in some business and share the profits thereof between them" -Indian Contract Act, 1872.
Features
01
Decisions
As every decision in any partnership firm involves intellect of two or more person, the chances of that decision being wrong or bias is much low.
02
Capital
More the partners, more the amount of money which can be invested into the business. Also, with every partner, the borrowing capacity of the firm also increases. Partners get interest for the amount invested in the firm by them at the rate of 12%.
03
Sharing
From sharing profits, losses and every part of the business, partners also share the burden and responsibility of the business. Starting and managing a business alone can feel stressful, particularly if you’ve not done it before. In a partnership, this downside of sole proprietorship can be avoided. As two different partnership having different experiences can help the business grow together.
04
Ease of Formation
The partners can agree mutually to create the partnership.The process of making partnership deep and getting it at registered with Registrar of firms is comparatively easy as compared with registration of a private limited company. This deed contains all the details like how the partnership will work, the rights and responsibilities of partners and what would happen in various possible situations, including if the partners fundamentally disagree or someone wants to leave.
05
Compliances
There are very fewer compliances for partnership firm as compared to a company. There is no requirement like board meeting, etc. Audit is mandatory if the turnover/ gross receipt exceeds Rupees One Crore in case of business and Rupees twenty-five laces in case of profession.
Liability
There is no limited liability like companies but this works in favor for the firm as all the decisions and investment would be made sensibly as the partners will be responsible as well as liable for it themselves. This form of business organization is most popular among lawyers, chartered accountants, doctors, solicitors and estate agents. Overall if one doesn’t want much statutory obligations on them and want to do business with ease, they can go for this kind of entity
Conditions for name
Any name can be provided to a partnership firm as long as the following requirements are met:
A name that is too close or identical to another company in the same industry should be avoided.
Words like emperor, crown, empress, empire, and any other expressions that indicate official authorization or consent should be avoided.
Process
01
Step 1 - Document Verification
02
Step 2 - Name Selection: - The name of the firm should not be identical or similar to the name of already registered firms. The name should not contain any words which reflect state patronage
03
Step 3 - Partnership Deed Drafting
04
Step 4 - Submission of application for registration with Registrar of Firms (ROF) with necessary forms and prescribed fees: -
(a) Application in Form-1;
(b) Duly filled specimen of affidavit;
(c) Certified original partnership deed;
(d) Proof of address of firm (Lease deed/ Rent deed if rented or copy of registry if owned)
05
Step 5 - Scrutinizing of the documents by ROF
Step 6 - Issuance of Registration Certificate
Documents required
Benefits
Economical:
Starting a general partnership is far less expensive than starting an LLP. Because the compliance requirements are low, it will still be cost effective in the long run.
Simple to start:
A general partnership can be formed within 2-4 business days, with an unregistered deed of partnership. However, registering for the event offers its own set of benefits.
Minimum Compliance:
There is no need to appoint an auditor for general partnerships, and annual accounts filing with the registrar is not required if the firm is still in the process of registration or is unregistered.
When compared to an LLP, annual compliances are also lower.
Why FinAccle
Finaccle provides one-stop integrated Financial-Accounting-Legal solutions to its clients.
You get all Financial, taxation, Accounting and legal solution under one roof.
At Finaccle, we help our clients by providing tailor-made solution for all their need.
Finaccle is a world class packaging team, built for you. Quality is what we pursue.
We are always Accessible, Approachable and Accountable.
We believe that flexibility leads to greatness, so we customise all of our services to each client's individual needs.
Got a question?
We've got answers.
Can a minor become a partner in partnership firm?
Partners must be major, should be sane and should not be disqualified by law from entering into a contract. A minor cannot be a partner in Partnership firm. However as per Section 30 of the Indian Partnership Act, with the consent of all the partners for the time being, he may be admitted to the benefits of partnership by an agreement executed through his guardian with the other partners.
Can a partner of a firm become a partner in another firm?
Can a partnership firm be sued in the name of the firm?
Can partners of the firm have to file income tax returns?
Does the death of a partner dissolve the partnership firm?