PARTNERSHIP FIRM REG

To start a Partnership firm, partners need to enter into an agreement which is popularly known as Partnership Deed. Different states impose different stamp duty on the partnership agreements/deeds, it means while creating a partnership instrument (Deed) the partners must purchase stamp paper of appropriate value as may be applicable in the respective state, to be annexed with the agreement. An agreement can further be notarized.

To start a Partnership firm, partners need to enter into an agreement which is popularly known as Partnership Deed. Different states impose different stamp duty on the partnership agreements/deeds, it means while creating a partnership instrument (Deed) the partners must purchase stamp paper of appropriate value as may be applicable in the respective state, to be annexed with the agreement. An agreement can further be notarized. Though registration of partnership Firm is not mandatory under The Partnership Act, 1932, however, section 69 of the act specifies the effect of Non-Registration, according to that an unregistered firm shall not be able to recover any sum more than Rs. 100. Hence, it is strongly recommended to register the partnership firm with the registrar of firms (ROF).

Document Required

Copy of PAN and Aadhar Card of all Partners

Copy of Address Proof ( Voter Id, Passport, Driving License, Aadhar Card) of all partners

Latest passport size Photographs of all partners

Registered Office Address Proof - Electricity Bill along with Rent Agreement / ownership proof of proposed registered office.

Copy of Mobile bill, telephone bill, electricity bill or Bank Statement of all directors / promoters with Present address

Registered Office Address Proof Electricity Bill along with Rent Agreement plus NOC (if Rented)/ Ownership proof (if Owned)

Passport size photographs of Applicant

Process Involved

1

Documents

2

Receipt of the required documents


3

Consultancy

4

Consultancy with respect to setup partnership firm

5

Deed

6

Drafting of Partnership Deed

7

Registration

8

Registration of Partnerhsip Firm with ROF

9

PAN and TAN

10

Application for PAN and TAN Registraion

Package Includes

Setting up consultancy for Partnership Firm

Application for PAN and TAN

Registration of Partnerhship firm with ROF

Frequently Asked Questions

Ans: A minimum of two Persons is required to start a Partnership firm. A maximum number of 20 Partners are allowed in a Partnership firm.
Ans: The Partner must be an Indian citizen and a Resident of India. Non-Resident Indians and Persons of Indian Origin can only invest in a Proprietorship with prior approval of the Government of India.
Ans: No, a Partnership firm has no separate legal existence of its own i.e., the Partnership firm and the partners are one and the same in the eyes of law. Liability of the Partners is also unlimited, and the partners are said to be jointly and severally liable for the liabilities of the firm. This means that if the assets and property of the firm is insufficient to meet the debts of the firm, the creditors can recover their loans from the personal property of the individual partners.
Ans: There are restrictions on the transfer of ownership interest in a Partnership firm. A Partner cannot transfer his/her interest in the firm to any person (except to the existing partners) without the unanimous consent of all other partners.
Ans: Partnership firm will have to file their annual tax return with the Income Tax Department. Other tax filings like service tax filing or VAT/CST filing may be necessary from time to time, based on the business activity performed. However, annual report or accounts need not be filed with the Ministry or Corporate Affairs, which is required for Limited Liability Partnerships and Companies.
Ans: Yes, there are procedures for converting a Partnership business into a Company or a LLP at a later date. However, the procedures to convert a Partnership firm into a Company or LLP are cumbersome, expensive and time-consuming. Therefore, it is wise for many entrepreneurs to consider and start a LLP or Company instead of a Partnership firm.