Partnership Company Overview
The Indian Partnership Act, 1932 governs and regulates partnership firms in India. The persons who come together to form the partnership firm are knowns as partners. The partnership firm is constituted under a contract between the partners. The contract between the partners is known as a partnership deed which regulates the relationship among the partners and also between the partners and the partnership firm
A Partnership is one of the most important forms of a business organization. A partnership firm is where two or more persons come together to form a business and divide the profits in an agreed ratio. The partnership business includes any kind of trade, occupation and profession. A partnership firm is easy to form with fewer compliances as compared to companies.
Benefits of a Partnership
For general partnerships, there is no need for an auditor to be appointed or, if the company is still in the process of registration or is still unregistered, annual accounts filing with the registrar is not necessary either.
A general partnership can be formed within 2-4 business days, with an unregistered deed of partnership. However, registering for the event offers its own set of benefits.
A general partnership is substantially less expensive to start than an LLP. It will still be cost effective in the long term because the compliance needs are minor.
Documents Required For Partnership Firm Registration
Listed below are the documents required for the partnership firm registration process.
- Application for registration of partnership (Form 1)
- Certified original copy of partnership deed
- Specimen of an affidavit certifying all the details mentioned in the partnership deed and documents are correct
- PAN card and address proof of the partners
- Proof of principal place of business of the firm
*Note:If the documents satisfy the registrar, the firm will be entered into the register of firms and a certificate of registration will be issued.
How to Register Partnership Firms in India
Starting a partnership firm in India is easy with Tax Salah. Below are the steps to start a partnership firm.
- Step 1: First, a member of our Tax Salah team will give you an overview of the process and present you with a list of essential documents for registration.
- Step 2: Documents can be submitted electronically via our website, email or whatsapp.
- Step 3: After the documents have been verified, a partnership deed is prepared and given to the partners for signatures.
- Step 4: All partners must sign the contracts on stamp paper and upload a copy to our systems.
- Step 5: Once the signed partnership deed is available, it is registered with the appropriate registrar of firms, and the partner is given a certificate of registration.
