What is Partnership Firm ?
A partnership firm is a business entity formed by two or more individuals working together under a single enterprise. There are two main categories of partnership firms:
- Registered Partnership Firm: A registered partnership firm is one that has undergone formal registration with the ROC and has received a registration certificate as evidence of its legal existence.
- Unregistered Partnership Firm: Any partnership that lacks a registration certificate from the Registrar of Firms is referred to as an unregistered partnership.
Partnership, in essence, is an agreement entered into by two or more persons who have mutually consented to share the profits or losses arising from a jointly conducted business. The individuals involved in a partnership arrangement are individually known as partners and collectively referred to as a firm.
Benefits
- Legal Recognition : A registered partnership firm is legally recognized and can sue or be sued in its name.
- Business Continuity : Provides a clear structure for business operations and continuity in case of any disputes.
- Ease of Funding : Banks and financial institutions prefer to lend to registered firms, increasing access to funding.
- Tax Benefits : Potential tax benefits and ease of tax filing as a registered entity.
- Credibility : Enhances the credibility and trustworthiness of the business in the eyes of customers, suppliers, and other stakeholders.
Process
Partnership Deed Drafting
Draft a comprehensive Partnership Deed outlining the terms and conditions agreed upon by the partners.
Document Collection
Collect identity and address proofs of all partners, and proof of the registered office address.
Stamp Duty and Notarization
Purchase requisite stamp paper and get the Partnership Deed notarized, if required.
Application Submission
Submit the application form along with the Partnership Deed and supporting documents to the Registrar of Firms.
Verification and Registration
The Registrar verifies the application and documents. If everything is in order, the Certificate of Registration is issued.
Post-Registration Compliance
Obtain PAN, open a bank account, and register for GST if necessary.
Documents Required
Partnership Deed:
- A signed copy of the Partnership Deed.
Identity Proof of Partners:
- PAN card of all partners.
- Aadhaar card, Voter ID, Passport, or Driving License of all partners.
Address Proof of Partners:
- Utility bill (electricity, water, and gas), bank statement, or any other address proof of all partners.
Registered Office Proof:
- Utility bill (electricity, water, gas) of the registered office address.
- Rent agreement or property ownership document.
Photographs:
- Passport-sized photographs of all partners.
Our Support?
- Initial consultation and name selection.
- Prepare comprehensive partnership deed.
- Assist with collecting and verifying necessary documents.
- Arrange stamp paper and notarize the deed.
- Registration with the Registrar of Firms.
- Ensure issuance of the registration certificate.
- Helps in Obtaining PAN, assist with bank account, GST registration, and compliance advice.
Frequently Asked Questions
The registration process typically takes a few weeks, depending on the timely submission of documents and processing by the Registrar of Firms.
A registered partnership firm is legally recognized and has undergone formal registration with the Registrar of Firms, receiving a registration certificate. An unregistered partnership firm lacks this certificate.
A partnership deed is a legal document outlining the terms and conditions agreed upon by the partners, including profit-sharing ratios, duties, and responsibilities.
Yes, a partnership firm can be converted into other business structures like a limited liability partnership (LLP) or a private limited company.