Partnership Firm

Fill Your Details & Get Your Quote

Get Instant Quotation over whatsapp
9716778456

Partnership Firm


Mylegal Route Is The Answer.


Online Partnership Firm Starts at Rs. 1487.00 / -
Inclusive of all Expenses Order Now

ABOUT PARTNERSHIP FIRM

A partnership is a type of business structure where two or more individuals or entities collaborate to manage and operate a business in accordance with the terms and objectives set out in a Partnership Deed or Agreement. In a partnership, the partners share the responsibilities, risks, and profits of the business.

General Partnership (GP)

In a general partnership, all partners have equal responsibility for the management of the business and share both the profits and the liabilities.

Limited Liability Partnership (LLP)

In an LLP, all partners have limited liability, protecting their personal assets from business debts. It also allows for flexibility in management structure.

Better Decisions

The partners are the owners of the business. Each of them has equal right to participate in the management of the business. In case of any conflict, they can sit together to solve the problem. Since all partners participate in the decision-making process, there is less scope for reckless and hasty decisions.

Joint Venture

A joint venture is a partnership formed for a specific project or a limited period. Partners in a joint venture collaborate to achieve a common goal and share in the profits or losses arising from the venture.

Advantages

Ease of Formation

Partnerships are relatively easy and inexpensive to establish compared to other business structures like corporations. There are typically fewer formalities and regulatory requirements involved in setting up a partnership.

Shared Responsibility

Partnerships allow for the sharing of responsibilities and workloads among the partners. This can lead to more efficient operations as tasks can be divided based on each partner's strengths and expertise.

Pooling of Resources

Partnerships enable the pooling of financial resources, skills, and knowledge from multiple individuals or entities. This collaborative effort can enhance the overall capacity of the business, promoting growth and development.

Tax Advantages

Partnerships are usually "pass-through" entities for tax purposes. This means that the profits and losses of the business pass through to the individual partners, who report them on their personal tax returns. This avoids the double taxation that corporations may face.

Flexibility in Decision-Making

Partnerships often have more flexibility in decision-making compared to larger corporations. Partners can collectively make decisions based on consensus, allowing for quicker responses to market changes and business opportunities.

Diversity of Skills and Perspectives

Partnerships can benefit from a diverse range of skills, perspectives, and experiences brought in by each partner. This diversity can contribute to innovative problem-solving and a well-rounded approach to business challenges.

Personal Interest

Partnerships often involve individuals who have a personal interest in the success of the business. This can lead to a high level of commitment and dedication among the partners.

Less Regulatory Compliance

Partnerships may have fewer regulatory and reporting requirements than larger corporations, reducing the administrative burden on the business.

Confidentiality

With a smaller number of partners, it may be easier to maintain confidentiality within the business. This can be important when dealing with sensitive information or trade secrets.

Ease of Dissolution

If needed, partnerships can be relatively easy to dissolve compared to corporations. This flexibility can be beneficial if partners decide to part ways or if the business circumstances change. While partnerships offer these advantages, it's important to note that they also come with certain challenges and considerations.

Minimum Requirement

Minimum 2 Partners.

Partnership Deed.

Document Required For Registration

The specific documents required for the registration of partnerships can vary depending on the jurisdiction and local regulations. However, there are common documents and information typically needed when registering a partnership. Here is a general list of documents and information that may be required:

Partnership Deed or Agreement

This document outlines the terms and conditions of the partnership, including the names of the partners, their contributions, profit-sharing ratios, and other relevant details. It serves as the governing document for the partnership.

Application Form

Many jurisdictions require the submission of a partnership registration application form. This form may collect basic information about the partners, the business, and the proposed partnership structure.

Business Name Registration

the partnership operates under a business name other than the legal names of the partners, the registration of that business name may be required. This ensures that the partnership is authorized to conduct business under the chosen name.

Proof of Identity of Partners

Partners may need to provide proof of their identity, such as copies of government-issued identification documents like passports or driver's licenses.

Proof of Address

Partners may be required to provide proof of their residential address. This could include utility bills, rental agreements, or other documents confirming the partners' addresses.

Tax Identification Numbers (TINs)

Partners may need to provide their individual or business tax identification numbers, depending on the jurisdiction. This helps in tax administration and compliance.

Registration Fee Payment

Most jurisdictions require the payment of registration fees. The amount can vary, and it is important to check with the relevant authorities for the specific fee structure.

Business Location Details

Information about the physical location of the business, including the address and contact details, may be required for registration purposes.

Bank Account Details

Providing details of the partnership's bank account may be necessary for official records and tax purposes.

Compliance with Local Regulations

Depending on the nature of the business, additional documents or permits may be required to comply with specific industry regulations or licensing requirements.

Registered Office Proof

Register office of all companies must be in India .If it is a Rented Property, Rent agreement and NOC from a landlord. If it is a Self-owned Property, Electricity bill or any other address proof.

Documents submitted must be valid and not more than 2 month old.

Form no. 1 (application for registration under partnership act)

Original partnership deed, signed by all partners .

Affidavit declaring intention to become partner.

Process

Application

It include the following information: –

  • Name of your firm
  • Name of the place where business is carried on
  • Names of any other place where business is carried on
  • Date of partners joining the firm
  • Full name and permanent address of partners.

Verification

Every partner needs to verify and sign the application.

Documents

Application for Registration in the prescribed Form – I

Duly filled Specimen of Affidavit – Certified copy of the Partnership deed

Proof of ownership of the place of business or the rental/lease agreement thereof It may be noted here that the name of your partnership firm should not “contain any words which may express or imply the approval or patronage of the government except where the government has given its written consent for the use of such words as part of the firm’s name”. Once the Registrar of Firms is satisfied that the application procedure has been duly complied with, he shall record an entry of the statement in the Register of Firms and issue a Certificate of Registration.

Frequently Asked Questions

Should a partnership firm be registered?

There is no provision under the partnership Act, 1932 which mandates the registration of partnership. However, the act itself provides for the procedure of registration of firm. Thus the registration is optional but highly recommended, as an unregistered firm shall not be able to recover any money in excess of INR 100/-. Apart from the above legal impediment, from the practical point of view also the firm should get registered in order to bring certainty in the relationship of partners and the firm per se.

No, it is not necessary. As the contract act does not makes it necessary to have the agreement in writing. However, it is always prudent to make a partnership deed to produce to the bank, income tax authorities and to clients with whom the partnership firm deals with. Apart from serving as a reference document a written partnership deed also helps in reducing conflict and confusion in due course of time.

Yes. A partnership firm can sue or be sued in its own name. The firm is treated separately from its partners. However, the partners do not enjoy limited liability as available in case of LLP or a company. In a situation where the firm is not in a position to discharge its liabilities, the partners shall be called in to pay the liabilities of the firm.

Yes. A person may become a partner with another for a single adventure or undertaking. The term of partnership firm can be for a specific period or for the completion of a specific project or at will. The deed must have a specific mention about the tenure of the partnership agreement. The Even partnership which is created for a specific purpose can be closed before the term with the consent of all the partners.

Yes. Unlike other incorporated business forms, you are personally liable for any of your sole proprietorship’s debts or legal judgments against your business. This means that in order to satisfy debts owed by your business, debt collectors can come after your personal assets, homes, cars, etc. For this reason, alone, you should be extremely cautious about setting up a sole proprietorship.

Yes. The law presumes that each partner is an agent of the other and while dealing with third parties the partner is representing the partnership firm in good faith. The acts done by one partner is binding on another even if it is not in the knowledge of the other party.

Three elements are necessary to form a partnership: There must be an agreement between two or more persons, The agreement must be to share the profits of the business, All partners together, or any one, on behalf of the others must carry on the business.

The Partnership Act does not prohibit a non-citizen from joining an Indian partnership firm, subject to necessary clearances and permissions from satisfactory authorities in this regard.

Capital is the initial amount in cash or kind contributed by the partners to start the business. It is not necessary for each partner to contribute equally to the capital. Contribution is based on the agreement between the parties.

Partners must be major (above the age of 18), should be sane and should not be disqualified by law from entering into a contract.

The following are the rights of a partner: To take part in the business, To share the profit or loss of the business, To inspect and make copies of the books of the firm, To receive remuneration for taking part in the business if specified in the partnership deed, To receive interest on capital if specified in the partnership deed.

Your duties as a partner are to: carry on the business, be just and faithful to each partner, disclose true accounts of the firm, furnish full information of all things affecting the firm.

As a partner you cannot do the following without the consent of the other partners: Submit a dispute relating to the business to arbitration. , Open a bank account on behalf of the firm in your own name, Compromise or relinquish any claim or portion of a claim of the firm, Withdraw a suit or proceeding filed on behalf of the firm, Enter into partnership with an outsider on behalf of the firm, Acquire or transfer immovable property belonging to the firm, Admit any liability in a suit or proceeding against the firm.

Testimonials

Ankita Mehrotra

One stop for all your legal solutions. Mylegalroute offers the best services on time.Highly recommended.

Sarthak Rajpal

One can expect the best legal advice & timely completion of the work.

Neha Khan

Thankful to team Mylegalroute. They are like your true friend, you ask for favour & they are always for you to provide you with the best.

Swapnil Kushwaha

Commitment, transparency, timely delivery, patience etc , are the words to describe the services of Mylegalroute. They are simply the best.

Akbar Mehtab

When you think for corporate solutions ,you think for Mylegalroute.

Ajay Singh

Ease of doing business = Mylegalroute.

Prashant Sharma

You name it,they provide it. Mylegalroute provide the best services in the market.

Surendra Kumar

You can trust Mylegalroute for long venture. I have been associated with Mylegalroute for quite sometime & they have never disappointed me .They have always fulfilled their commitment.

blog
About Us

    Regd Office: C-2/170, 3rd Floor, New Ashok Nagar, New Delhi-110096,India

    Corporate Office: 430, 4th Floor, Angel Mega Mall, Khaushambi, Ghaziabad-201010,India

    Branch Office: 2/152, Vivek Khand, Gomti Nagar, Lucknow, Uttar Pradesh-226010,India

    (+91) 9716778456

    info@mylegalroute.in

Quick Link
Enquiry

Get Instant Quotation over whatsapp
9716778456

© 2024 MyLegalRoute.in. All Rights Reserved.