Partnership Firm
About Partnership Firm
Partnership Firms in India are governed by the Indian Partnership Act, 1932. As per Section 4 of the Indian Partnership Act:- “Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all”.
Our scope of work
1. Any amount of Capital;
2. Drafting of Partnership Deed;
3. PAN of Partnership Firm;
4. Opening of Bank Account documentation;
Know more about Partnership Firm
Partnership Firms
Partnership Firms in India are governed by the Indian Partnership Act, 1932. As per Section 4 of the Indian Partnership Act:- “Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all”.
1. Partner:
- Minimum 2 Partners are required for starting a Partnership Firm.
- Partners contribute to capital of the firm and take active participation in the day to day functioning of the firm, hence they are responsible or liable for any activities of the Partnership Firm.
2. Registered Office:
- Any place can be made as the registered office of the Partnership Firm even the residential place can be used as the registered office of the Partnership Firm.
3. Registering Authority:
- Registrar of Firms.
4. Required Documents
> Proof of Registered office address (Conveyance/ Lease deed/Rent Agreement/Maintenance Bill)
> Copy of the utility bills of the registered office (Electricity Bill/Telephone Bill not older than two months)
Partners
> PAN Mandatory- Indian National / Passport – Foreign National
> Proof of Address (Aadhar / Passport / Electricity Bill/Bank Statement/Telephone Bill/Mobile Bill not older than 2 months)
- Application for Registration of Partnership with Registrar of Firm
- Duly filled specimen of Affidavit
- Certified True Copy of the Partnership Deed
- Ownership proof of the principal place of business or rental/lease agreement thereof
- Issue of Registration Certificate by Registrar of Firm
Advantages
1. CAPITAL
2.FLEXIBILITY
3.SHARED RESPONSIBILITY
4.DECISION MAKING
Disadvantages
1. DISAGREEMENTS
2.AGREEMENT
3.LIABILITY
4.TAXATION
5.PROFIT SHARING
| Factors of Comparison | Private Company | Public | One Person Company | Limited Liability Partnership | Partnership | Sole Proprietorship |
|---|---|---|---|---|---|---|
| Capital | Min: INR 1 & Max:No Limit | Min: INR 1 & Max:No Limit | Min: INR 1 & Max:2 Crore | Min: INR 1 & Max:No Limit | Min: INR 1 & Max:No Limit | Min: INR 1 & Max:No Limit |
| Director | Minimum 2 | Minimum 3 | Minimum 1 | – | – | – |
| Shareholder | Minimum 2 | Minimum 7 | Minimum 1 | – | – | – |
| Designated Partner/Parter | – | – | – | Minimum 2 | Minimum 2 | – |
| Taxation | 30%(25% if turnover does not exceed 250 Crore) | 30%(25% if turnover does not exceed 250 Crore) | 30% | 30% | 30% | As per Slab Rates |
| Statutory Audit | Compulsory | Compulsory | Compulsory | If Contribution exceed INR 25 Lacs; If Turnover exceed INR 40 Lacs | Not Required | Not Required |
| Investor Preference | High | Low | Low | Medium | Very Low | Very Low |
| Compliance Cost | Mdeium | High | Low | Low | Low | Low |
| Regulator | Registrar of Companies | SEBI/Registrar of Companies | Registrar of Companies | Registrar of Companies | Registrar of Firms | – |
| Time take for Registration | 5-7 working days | 5-7 working days | 5-7 working days | 20-25 working days | 10-12 working days | 5-7 working days |