PARTNERSHIP FIRM REGISTRATION

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PARTNERSHIP FIRM REGISTRATION

Partnership Firm Registration

When Business is carried out by at least two or more people to earn profit by making an agreement, this form of business is called partnership firm. A Partnership Deed is drafted to govern the business operations. The Norms and conditions decided in this partnership deed will be jointly and severally applicable on all the partners. In Partnership Firm, All the partners will be jointly and individually liable for all the liabilities of firm.

In India, Partnership firms are governed by Indian Partnership Act, 1932. In this act, It is not mandatory to register a partnership firm but there are some reasons due to which registration of partnership firm is better in a way:

If firm is registered, then only partner can file a case in the court against partnership firm and other partners.
Unregistered firm can’t file a case or can’t sue the third party but firm can be sued by third party.
Unregistered firm and all the partners can not claim set off in dispute with third party.

Why Partnership Firm?

Less Compliances and formalities in compare to LLP/ Company
Easy to Start/ Establish
No Audit Requirement
Less Expensive in compare to LLP/ Company

How we work

1. Complete our simple Form
Click HERE. You are required to fill all your details in questionnaire form.
2. Get a Call from us
Our Authorized Representative will get in touch with you and explain the full process.
3. Submission of Documents
You need to submit relevant documents (list provided by us).
4. Drafting of Partnership Deed
Our team of experts will draft the partnership deed for you.
5. Apply for TAN/PAN
We will apply for TAN/PAN on your behalf.
6. Congratulations
Your Registration Documents will be provided to you.

Frequently Asked Questions

What are the minimum Requirements for Partnership Firm?

At least 2 Partners
No limit on minimum capital requirements

Difference between Active/ Managing partner and sleeping/ dormant partner?

Active/ Managing Partner:
Partner who is actively involved in day to day business operations of the partnership firm. He acts as an agent of all the other partners. He carries business on behalf of other partners. If Active partner wants retirement then he must give a public notice about his retirement otherwise he will continue to be liable for all the acts even after his retirement.

Sleeping/ Dormant Partner:
Partner who does not take active part in day to day business operations of the partnership firm. He contributes capital like any other partner and also takes share of profit and loss. He is not required to give any public notice for his retirement.

Whether GST registration is mandatory for Partnership?

No, however GST registration is mandatory only in case when annual turnover of partnership firm exceeds following threshold limit

Rs. 40 Lakhs in case of Goods (allover India except some specified states i.e. Northeastern part of India)
Rs. 20 Lakhs in case of Services (allover India except some specified states i.e. Northeastern part of India)
Rs. 10 Lakhs in case of Goods and Services for these specified states i.e. Northeastern Part of India

Can I convert my partnership firm into company or LLP later on?

Yes, Partnership firm can be converted into company or LLP Later on. However procedures to convert a partnership firm into company or LLP are complex and expensive.

What are the annual compliance and audit requirements for partnership firm?

Partnership firm is required to file its annual income tax return. Other tax filings such as GST returns etc. if applicable may be filed at regular intervals. It is not necessary to get its financial statements audited. However Tax audit may be applicable on the basis of turnover and other criteria specified by Income Tax Department. Apart from it, partners are also required to file their individual income tax returns.

PARTNERSHIP FIRM REGISTRATION