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PARTNERSHIP FIRM

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PARTNERSHIP FIRM

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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. With 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 unregistered 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. Partnership firms are created by drafting a Partnership deed amongst the Partners and Corpium advisory can help start a registered or unregistered Partnership firm in India.

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    REASONS TO REGISTER A PARTNERSHIP FIRM

    1. Easy to Start: A Partnership is easy to form as no cumbersome legal formalities are involved. Its registration is also not essential. However, if the firm is not registered, it will be deprived of certain legal benefits. The Registrar of Firms is responsible for registering partnership firm.
    2. Business Name: If the name of a Partnership firm is not registered in trade mark, a Partnership firm can choose to have any name – as long as it does not infringe on a registered trademark.
    3. Annual Filing Not Required: A Partnership firm is not required to file its annual accounts with the Registrar each year unlike a Limited Liability Partnership or Company.
    4. Partnership Deed: In a Partnership firm, the partnership deed will determine the ownership of the firm, profit sharing ratio, rights and responsibilities of each of the Partner. A partnership deed can be registered with the Registrar.
    5. Bank Account: Bank account can be opened in the name of a Partnership firm. To open bank account, the partnership deed copy and KYC documents of the Partner must be submitted along with any other document as required by the Bank.

    DOCUMENTS REQUIRED

    1. Identity Proof of Partners: PAN Card for Indian Nationals & Notarized Passport Copy for Foreign Nationals.
    2. Address Proof of Partners: Passport/Driving License/ Aadhar Card/ Voter id Card and Copy of Electricity Bill/ Water Bill/ Telephone Bill/ (Any of these documents shall not be more than 2 months old).
    3. Proof of Registered Office: Rent Agreement or Sale Deed and Copy of Electricity Bill/ Property Tax Receipt and NOC from Land Owner to use premises as Registered Office.
    4. Signed Partnership Deed: Deed of Partnership signed by all the partners on a Non-Judicial stamp paper value of which would vary on the capital contribution of the Partners.

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      FREQUENTLY ASKED QUESTIONS

      How many people are required to start a Partnership firm?

      A minimum of two Persons is required to start a Partnership firm. A maximum number of 20 Partners are allowed in a Partnership firm.

      What are the requirements to be a Partner in a Partnership firm?

      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.

      What are the documents required to start a Partnership firm?

      PAN Card for the Partners along with identity and address proof is required. It is recommended to draft a Partnership deed and have it signed by all the Partners in the firm.

      What is the capital required to start a Partnership firm?

      There is no limit on the minimum capital for starting a Partnership firm. Therefore, a Partnership firm can be started with any amount of minimum capital.

      How will Corpium advisory help me start a Partnership firm?

      Our Associate will understand your business requirements and help you start a Partnership firm by drafting the Partnership deed. Based on the requirements, Corpium advisory can also help register the Partnership deed with the relevant Authorities to make the Partnership Firm a Registered Partnership firm.

      Who will register a Partnership firm?

      Partnership firms are registered by the Registrar of Firms, under the Indian Partnership Act, 1932.