Partnership

Overview

A partnership firm is a business structure during which two or more individuals manage and operate a business by the terms and objectives that began within the Partnership Deed. it’s owned, managed, and controlled by an Association of individuals for profit. Partnership firms are moderately easy to begin and frequent amongst small and medium businesses within the unorganised sectors.

Partnership firms are created by drafting a Partnership deed amongst the Partners and by a registered Partnership deed, Book My Consultant can assist you to start a Partnership firm in India.

Our Process

Estimated time to complete the process 4-5 working days

Step 1

Initial Discussion & collection of Basic information

Step 2

Collection & Verification of Documents

Step 3

Drafting & Executing Partnership Deed

Step 4

Review and Approval from Partner's

Step 5

Payment of Stampduty for Deed & Notarization of Deed

Step 6

Applyying For PAN & TAN Number

Step 7

Dispatch of Deed and other deliverables.

Choose Your Package

All Inclusive Pricing – No Hidden Fee

Basic
- ₹ 4700
- - Drafting of Partnership Deed
  - Execution of Partnership Deed
  - Applying For PAN & TAN Card
  - MSME Registration
  - Bank Account Opening Support
  - Stamp Paper *
- Purchase Now

Premium
- ₹ 7700
- - Drafting of Partnership Deed
  - Execution of Partnership Deed
  - Applying For PAN & TAN Card
  - MSME Registration
  - Bank Account Opening Support
  - Stamp Paper *
  - GST Registration
  - E Way Bill Portal Registration
  - 3 Month GST Return Filing
  - Accounting Software
- Purchase Now

Ultimate
- ₹ 15000
- - Drafting of Partnership Deed
  - Execution of Partnership Deed
  - Applying For PAN & TAN Card
  - MSME Registration
  - Bank Account Opening Support
  - Stamp Paper *
  - GST Registration
  - E Way Bill Portal Registration
  - 1 Year GST Return Filing
  - Accounting Software
  - 1 Year Income Tax Return Filing
- Purchase Now

* Stamp Paper will be purchase by client as per state rules.

* Charges applicable extra for Partnership Firm registration with Registrar of Firms of the respective states. This is an optional process after partnership firm documentation.

Benefits

No Min Capital

There aren't any restrictions intrinsically regarding the minimum capital requirement just in the case of a partnership firm. The Partnership firm is often registered even with Rs. 10,000 as total capital.

Easy to create

A partnership Firm is extremely easy to form and it comes into existence by a Partnership Deed. Its registration isn't mandatory. Even after formation, there are no annual filings to be done except tax returns.

Scalability

Its operations are scalable. Any new partners are often introduced only by executing a supplementary partnership deed. A partner can retire or are often removed by executing an identical deed.

Better Tax Planning

A partnership firm is a legal mechanism for greater tax planning. The partnership firm may be a separate entity and its tax is calculated separately so it offers remuneration and interest to working partners.

Documents Required

Documents required for the formation of a Partnership Firm

Form No.1 (Application of registration under the Partnership Act)

PAN Card of all the partners.

AADHAR CARD and Permanent address of each partner.

Name of the partnership firm and place of business.

Address detail of partnership firm intending to be incorporated.

Details nature of partnership and share in revenue by each partner.

Original copy of Partnership Deed, signed by all partners.

Rental or lease agreement of the property/campus where the business is set.

Affidavit declaring the intention to become a partner.

Profit / Loss Sharing Ratio

Capital Contribution Ratio.

Clear All Your Doubts !

What is a Partnership Firm?

A partnership firm is a business form in which two or more individuals manage and operate a business in accordance with the terms, and objectives set in a Partnership Deed. This may or may not be registered.

Are there any restrictions on the number of Partners?

A partnership must have a minimum of two partners. A partnership firm within the banking business can have up to 10 partners, while those engaged in any other business can have 20 partners.

Should I get Partnership firm registration done in India?

No, registration of a partnership isn't necessary. However, for a partner to lodge a complaint or 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 small or family businesses, it's fine if a firm isn't registered.

Is It mandatory to possess a written Partnership agreement (Partnership deed)?

No, it's not mandatory to possess a written Partnership agreement i.e. Partnership deed. However, it's always the simplest course to possess a document (partnership deed) rather than oral agreements.

Can one deal with one of the partners of a Partnership Firm?

Yes. The law presumes that every partner is an agent of the opposite and dealing in good faith with one partner binds the opposite partners also.

Is the firm liable for the wrongful act of 1 partner?

Yes. The firm and all the partners are responsible for the wrongful act or fraud which causes loss or injury to any third parties.

What are the documents required for GST registration for a Partnership firm?

Photos of all Partners
PAN Card of all Partners
Aadhar Card of all Partners
PAN Card of the Partnership Firm
Proof of Constitution of Business (Partnership deed)
Proof of Principle place of business (Anyone — Electricity Bill/Rent or Lease agreement/The Latest bank statement – Not less than 2 months old)
Letter of Authority / Authorization in favor of any Partner

What is Partnership at will?

When the partnership deed doesn't contain any provision for the duration of the partnership nor conditions for the termination of the partnership, it's a partnership at will.

Who can become a Partner in a Partnership Firm?

Anyone who fulfils all the criteria given below can become a partner

Should be a Major (More than 18 years of age)
should be sane (Not of unsound mind)
Should not be disqualified by law from entering into a contract by the court.

Can a non-resident Indian become a partner in a partnership firm?

The Partnership Act does not prohibit a non-resident from joining an Indian partnership firm in India.

Can the contribution of partners and its profit-sharing ratio be different?

In a partnership firm, each partner doesn't need to contribute capital in the ratio of profit. The contribution is based on the agreement between the partners, and the profit-sharing ratio is indicated in a separate clause.

What are the rights of the partner in a partnership firm?

A partner has the following rights in the partnership firm:

To take part in the day-to-day business of the firm.
To share profit and loss of the firm.
To inspect and verify the books of firm and contracts.
To receive remuneration and Interest on capital as per the partnership deed of the firm

Can a partnership firm become a partner in another firm?

A partnership firm cannot become a partner of another partnership firm because it is not a legal person. Neither a Partnership firm becomes a partner in an LLP

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