Overview
A Partnership Firm is a popular form of business constitution for businesses that are owned, managed and controlled by an Association of People for profit. Partnership firms are relatively easy to start are is prevalent amongst small and medium sized businesses in the unorganized sectors. After the introduction of Limited Liability Partnerships in India, Partnership Firms are fast losing their prevalence due to the added advantages offered by a Limited Liability Partnership.
There are two types of Partnership firms, registered and un-registered Partnership firm. It is not compulsory to register a Partnership firm; however, it is advisable to register a Partnership firm due to the added advantages.
Benefits of a Private Limited Company
- Partnership firms are one of the easiest to start. The only requirement for starting a partnership firm in most cases is a partnership deed.
- Decision making is the crux of any organization. Decision making in a partnership firm could be faster as there is no concept of the passing of resolutions
- Compared to a proprietorship firm, a partnership firm can easily raise funds as it involve more than one person.
- Every partner owns and manages the activities of their firm. Their tasks might be varied in nature but people in a partnership firm are united for a common cause. Ownership creates a higher sense of accountability, which paves the way for a diligent workforce.
Obligations of a Private Limited Company
- Complying with Statutory laws such as Excise Duty, Sales Tax, Service Tax, etc.
Why Choose Partnership Registration
- It is flexible and has limited liability.
- A greater capital contribution and greater stability.
- The possibility to grow big and expand
Required Documents
- Copy of Rental Agreement (along with NOC from owner)/Sale Deed in case of own property.
- Telephone or Mobile Bill/Electricity or Gas Bill Scanned copy of Notarized Rental Agreement in English
- Copy of PAN card, Identity and Address Proof of Partner
Process
Drafting Partnership Deed
The Partnership Deed is basically the main theme of the business and is the most important thing which is required to be drafted before startup. So, before startup it is very important to understand the needs of the business, the partners and other relevant details to draft the partnership deed.
Notarized
If Partnership need to get notarized it will take at least 2 working days to get it done.
Partnership Deed registration
Depending on the choice of the Partners, if partnership need to get registered then it will take around 7- 10 working days.
Apply for PAN & TAN & Bank Account
On the basis of Partnership Deed you can apply for the TAN , PAN & Bank.