Partnership firm

partnership

 

online registration of partnership firm | partnership firm registration in delhi

 

What is a Partnership Firm

 

 


A legal form of business operation between two or more individuals who share management and profits. If your business will be owned and operated by several individuals, you’ll want to take a look at structuring your business as a partnership. In case of Partnership, the partners manage the organization and assume responsibility for the partnership’s debts and other obligations. Unless you expect to have many passive investors, limited partnerships are generally not the best choice for a new business because of all the required filings and administrative complexities. If you have two or more partners who want to be actively involved, a general partnership would be much easier to form.

 

Packages Includes

 

 


Digital Signature & DPIN of 2 Directors

We will draft your Company Constitution (Agreement)

PAN & TAN for your Firm

Name Reservation

Compliance with applicable laws



 

Document required:

 

 


 

Documents of Directors for DPIN

 

 


  • Self attested copy of PAN Card or Passport/Voter ID/ Driving License
  • Self attested copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
  • Scanned passport-sized photograph
  • Specimen signature

 

FOR THE REGISTERED OFFICE

 

 


  • Notarised Rental Agreement in English (in case of rented property)
  • No-objection Certificate from property owner (in case of rented property)
  • Sale Deed/Property Deed in English (in case of owned property)
  • Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill

 

Advantage Of Partnership Firm

 

 


 

Following reasons can help you decide, why you should go for an PARTNERSHIP FIRM:

 

 

  • Capital

    There is no minimum Capital requirement in case of partnership unlike LLP and Private Limited Company. One can even start with say Rs. 50,000.

  • Flexibility

    A partnership is generally easier to form, manage and run. They are less strictly regulated than companies, in terms of the laws governing the formation and because the partners have the only say in the way the business is run (without interference by shareholders) they are far more flexible in terms of management, as long as all the partners can agree.

  • Shared Responsibility

    Partners can share the responsibility of the running of the business. This will allow them to make the most of their abilities. So if one partner is good with figures, they might deal with the book keeping and accounts, while the other partner might have a flare for sales and therefore be the main sales person for the business.

  • Decision Making

    Partners share the decision making and can help each other out when they need to. More partners means more brains that can be picked for business ideas and for the solving of problems that the business encounters

Process

  • We’ll first understand your requirement of business and on such basis prepare your partnership deed
  • We will finalize your deed as per your recommendation
  • PAN and TAN Application Filing
  • Allotment of PAN & TAN

 

Frequently asked question:

 

 


1) Is it necessary to register a partnership firm?

Not necessarily. However, unless a partnership firm is registered with the registrar of firms and societies, the rights of the partners inter se or against strangers cannot be enforced in a court of law.

2) Is a partnership deed necessary to form a partnership firm?

No, it is not necessary. However it is often prudent to make a partnership deed to produce to the bank, income tax authorities and to clients with whom the partnership firm deals with. If you decide to organize your business as a partnership, be sure you draft a partnership agreement that details how business decisions are made, how disputes are resolved and how to handle a buyout. You’ll be glad you have this agreement if for some reason you run into difficulties with one of the partners or if someone wants out of the arrangement.

3) Can a partnership firm be constituted for a particular business undertaking?

Yes. A person may become a partner with another for a single adventure or undertaking.

4) Is there a limit on the number of partners in a partnership firm?

Yes. If the number of partners is more than 20, it has to be registered as a company. In other word in case of partnership form of business maximum 20 members/partners can be there.

5) Can a partnership firm be sued in the name of the firm?

A person may sue a partnership firm but the plaint has to disclose the name of all the partners who constitute the firm. However under the Income Tax Act, a firm can be assessed to tax independently of its partners. A partnership firm therefore enjoys a quasi independent status.

6).Can one deal with one of the partners of a partnership firm?

Yes. The law presumes that each partner is an agent of the other and dealing in good faith with one partner binds the other partners as well. There are certain exceptions to this rule, which is answered in the next question.

7) What are the acts that all partners should give express consent to do?

Submitting a suit for arbitration, transfer of immovable property, acquisition of immovable property, withdrawal of suits is all forbidden except by the consent of all partners or by the usage of custom to the contrary.

8) Is the firm liable for the wrongful act of one partner?

Yes. The firm and all the partners are liable for the wrongful act or fraud which causes loss or injury to any third parties.

9) Should a retiring partner give notice of his retirement from the firm?

Every partner will be liable for the acts of the firm even if he has retired, if he has failed to give public notice of his retirement. Such notice should be given to the registrar of firms by announcements in the local official gazette.

10) Does the death of a partner dissolve the partnership firm?

Yes. The death of a partner automatically dissolves the partnership firm. It is however usual for the partnership deed to provide before hand that the firm should continue in spite of death, retirement or insolvency of a partner.

11) What is a partnership at will?

When the partnership deed does not contain any provision for the duration of the partnership nor conditions for the termination of partnership, it is a partnership at will.

12) What is the legal status of partnership property?

Any property can be treated as the property of the firm by simply showing it as such in the book of accounts. This would constitute partnership property and all partners are joint owners of the partnership property as increased or decreased by profits in the course of business. Property belonging to an individual partner does not become the firm’s property simply by being used for the purpose of the partnership.

13) What are the provisions related to personal liability of partners?

Personal liability is a major concern if you use a general partnership instead of Limited Liability Partnership to structure your business. Like sole proprietors, general partners are personally liable for the partnership’s obligations and debts. Each general partner can act on behalf of the partnership, take out loans and make decisions that will affect and be binding on all the partners (if the partnership agreement permits).