Registered Partnership Firm

Best Suited For

• Easy to start

• Businesses with multiple Co-founders

• Relatively Inexpensive

What's Included?

Benefits of Partnership Firm

Documents Required

Partnership Firm Registration Services

A partnership firm is a company that is formed by two or more people to manage a business and turn a profit. A group of people is referred to as a partnership firm when all of its members are acknowledged as partners.

Partnership-related topics are covered in the Indian Partnership Act, of 1932. An essential aspect of the partnership is that every partner acts as both a principal and an agent for every other partner in the company, meaning that every partner’s actions are collectively taken into consideration. Put another way, this implies that each partner has unlimited liability for the partnership deed in the company.

In India, it is not required for partnership firm registration; however, it is advised given the benefits of having a registered company and the restrictions on accessing a court system to enforce a partner’s rights.

Procedure to form a Partnership Firm

Step 1: Fill out an Application for a Partnership Firm

An application together with the necessary fees must be sent to the Registrar of Firms in the state where the business is situated. The registration application needs to be signed and verified by each partner or by their representative.

Step 2: Selecting the Partnership Firm’s Name

You can call a partnership firm by any name. Make sure they follow the guidelines, though, such as not using the same name twice and avoiding anything about the government, among others.

Step 3: Registration Certificate

If the Registrar is satisfied with the registration application and supporting partnership agreement, the firm will be entered into the Register of Firms and issued the Registration Certificate. The most current information about all firms is accessible to the public for a fee in the Register of Firms.

Documents Required for Partnership Firm Registration

During partnership firm registration, partners must provide certain documentation, including the partnership deed, the firm’s PAN card, proof of partners’ addresses, proof of office addresses, GST registration, and a current bank account, along with an affidavit attesting to the accuracy of all the information in the deed.

Partnership Deed
Address Proof
Passport-size Photographs
Address Proof of Partners
Identity Proof of Partners
Application for registration of partnership (Form 1))
Bank Account Proof
Partnership Firm’s PAN Card
GST Registration (if applicable)
Power of Attorney
Specimen Signature
NOC from the Property Owner
Affidavit

Post-Registration Obligations of Partnership Firm

Following the official start of the partnership firm registration process, here are the post-registration obligations to follow.

In India, a partnership firm is required to file an ITR (Income Tax Return) regardless of the amount of money made or lost.
A registered partnership firm will pay an additional income tax surcharge on top of the 30% tax on total income.
Furthermore, any partnership firm that generates more than ₹100 lakhs in revenue annually is required to conduct a tax audit.
Companies that bring in more than ₹40 lakhs a year (₹20 lakhs in the case of the northeastern states) are required to register for GST online. Nevertheless, to function, companies engaged in export-import, marketplace aggregation, and e-commerce must register for GST.
The relevant company must file monthly, quarterly, and annual GST returns after registering for GST. In addition, partnership firms are required to file their quarterly TDS (Tax Deducted at Source) returns, which need to have TANs and deduct tax at source in compliance with the relevant TDS regulations.

Advantages of Partnership Firm in India

Easiest Business Structure

One of the simplest business structures to establish is a partnership deed registration, which requires the creation of a partnership deed. Therefore, it can begin as soon as the partners are prepared and with the least amount of paperwork; in contrast, other companies need at least ten to fifteen days to complete all the necessary formalities, such as obtaining a DSC and DIN/DPIN name approval.

Ease of Decision-Making

Since passing a resolution does not require adhering to rules, choosing a firm registration is simpler and takes less time. A partner does not need permission from other designated partners to act on behalf of the company in transactions.

Can File Suit Against Co-Partners

In the modern world, it is obvious that the best way to settle disputes is through the legal system because one can never predict when a disagreement between partners over profit sharing or another matter about the partnership firm’s operations will arise. Further to the previous point, no provision of a registered partnership deed may be enforced by the partners of an unregistered partnership firm.

Raising Funds

Funds can be raised in a partnership firm with ease, unlike proprietorship firms that may lack the necessary expertise. Multiple partners can contribute more practically. It should be mentioned that banks view a partnership firm more favourably when approving loans and credits.

Easy Management Without Any Disputes

As stated in the partnership agreement, each partner is given tasks and responsibilities based on their qualifications. A partnership deed aids in preventing disagreements of any kind between the partners.

Limitations of Partnership Firm

i) Risks of Additional Liability

Each partner indeed has unlimited liability, just like the sole proprietor. However, in addition to his actions, he may also be held liable for the partnership deed and errors of co-partners over whom he has no control.

(ii) Lack of Harmony

In business partnerships, the proverb “too many cooks spoil the broth” may hold. It can be challenging to attain harmony, particularly when there are numerous partners. Policy conflicts and a lack of centralised authority can cause organisational disruption.

iii) Lack of Public Confidence:

Similar to a company, a partnership may experience a decline in public trust due to the absence of any legal framework requiring the registration of the partnership and the disclosure of its financial information.

(iv) Limited resources:

A partnership is advantageous if it can be established with little money. But as the company grows and expands, it starts to work against it. Partners find it nearly impossible to raise capital above a certain point. Usually, partners’ personal belongings are the limit.

(v) Unlimited liability

Couples are less inclined to take risks because they are discouraged from doing so by unlimited liability.

Why Choose BizExpress as Your Partnership Firm Registration Partner?

Timely service

We are aware that when it comes to partnership compliance and partnership deed registration, time is of the essence. We work hard to give our customers prompt, effective service because of this. We collaborate closely with you to fully grasp your requirements and deliver prompt, deadline-compliant solutions.

Competitive Pricing

In our opinion, good services shouldn’t cost more. Because of this, we provide all of our services at competitive prices without sacrificing quality. You will always know what you are paying for because of our fair and transparent pricing.

Comprehensive service

We provide an extensive array of services for compliance and partnership firm registration. This covers everything, including tax filing, regulatory reporting, and other associated services, from the time of initial registration to continuous compliance. For all of your partnership registration and compliance needs, we are your one-stop shop.

Unparalleled Expertise

With years of experience in partnership deed registration and compliance, our team of chartered accountants and legal professionals is highly skilled. Hundreds of businesses have benefited from our assistance in partnership firm registration and meeting all legal and regulatory requirements. Our staff is knowledgeable about recent legal developments and can offer professional advice to make sure your partnership is compliant and running smoothly.

F.A.Q.

Is an audit required for a partnership company?

Indeed, in India, a partnership firm must conduct an audit. According to the Income Tax Act, a company’s accounts must be audited only if its turnover during a financial year surpasses ₹50 lakhs for professionals and ₹1 crore for businesses.

Is a Partnership Deed compulsory?

Yes, a Partnership Deed is required when forming a Partnership.

How long does it take to register a partnership firm?

There is no fixed timeline for this. It is subject to change; contact our expert to receive basic legal advice.

Is it possible for a partnership to become a company in India?

In India, a partnership firm can indeed become a company. Section 366 of the Companies Act of 2013 governs this. For the conversion, some particular steps and specifications need to be fulfilled.

Can a partnership firm registered in Delhi operate in other states?

Yes, a Delhi-registered partnership firm can conduct business in other states. On the other hand, you might have to adhere to extra regulations, like getting the required permits or registrations particular to those states, if you intend to open branch offices or conduct business extensively in those states.