Partnership Registration

Partnership Registration

Partnership Registration is necessary for any association of people to join for a business purpose and continue with legal bindings,sharing their profits according to law. We are giving the best services for Partnership Registration in Bangalore. We prepare Partnership Deed with the help of professionals according to the requirement of the customer and register the Partnership Firm with Registrar of Firms on behalf of the customer.

A general partnership firm is a business structure in which two or more individuals join together and operate a business in accordance with the terms and objectives set out in the Partnership Deed.

With the introduction of Limited Liability Partnerships (LLP) in India, general partnership firms are fast losing their prevalence due to the added advantages offered by a Limited Liability Partnership (LLP) firms.

However, low costs, ease of setting up and minimal compliance requirements makes it a sensible option for some, such as home businesses that are unlikely to take on any debt. Registration is optional for general partnership firm registration.

There are two types of partnership firms, registered and unregistered partnership firm. It is not mandatory to register a partnership firm; however, it is recommended that a partnership firm is registered in order to avail several benefits conferred by the law.

It is simple to form a partnership firm. First, a partnership firm deed needs to be drafted among the partners. And followed by availing other registration services such as VAT, Sales tax, Service tax, TDS registration etc.

Key Features of Partnership Firm

- 2 Person Required as Partners.
- Partners share responsibilities and duties of the business.
- More capital can be brought into the business.
- Partners share responsibilities and duties of the business.

Essential Facts on Partnership

What is a partnership firm?

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.

Why should I set up a partnership firm?

A partnership firm is best for small businesses that plan to remain small. Low costs, ease of setting up and minimal compliance requirements make it a sensible option for such businesses. Registration is optional for General Partnerships. It is governed by Section 4 of the Partnership Act, 1932. For larger businesses, it has lost its relevance with the introduction of the Limited Liability Partnership (LLP). This is because an LLP retains the low costs of a partnership while providing the benefit of unlimited liability, which means that partners are not personally liable for the debts of the business.

Is a partnership firm a separate entity?

The partners in a partnership firm are the owners, and thus, are not separate entity from the firm. Any legal issues or debt incurred by the firm is the responsibility of its owners, the partners.

How many partners can there be?

A partnership 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.

Is partnership firm registration necessary?

No, registration of a partnership 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.

What are the main aspects of a partnership deed?

The deed should contain names of the partners and their addresses, the partnership name, the date of commencement of operation of the firm, any capital invested by each partner, the type of partnership and profit-sharing matrix, rules and regulations to be followed for intake of partners or removal.

Documents Required for Partnership Firm Registration

1. PAN Card of each partner,
2. Name, fathers name and address of all partners,
3. Name and nature of business,
4. Address of business.

Benefits of Partnership Company Registration

It's easier and quicker to register a partnership firm, and kickstart your business almost immediately.

1. Easy to form, No Registration is mandatory
2. Can be started within hours by signing a partnership agreement
3. Capacity to Borrow Money in the name of firm
4. Easy to add and remove partners without any hassle
5. Property can be owned in the name of the firm
6. Capacity to sue and be sued in the name of the firm.

Disadvantages of Partnership Firm

1. Unlimited liability.
2. Disagreement among the partners.
3. Can not raise funds easily from investors.
4. Less Features as Compare to LLP Formation with same cost of formation.
5. Maximum 20 Members are allowed.

Time Duration:
12 working days.

Our Methodology:

- Preparation of Partnership deed,
- Get approval from partners,
- Register with Registration of Firms,
- Obtaining of certificate and handover to the clients.