Partnership Firm
Partnership Firm
The formation of a partnership firm was defined from Partnership Act 1932. Both registered and unregistered firms in India gets validated through this Act. However, unregistered firms have few hurdles in attracting partners compared to registered firms, but that can also be overcome once it gets registered.
A Partnership Deed is an agreement between the partners that outlines the terms and conditions of the partnership. A partnership firm is a business entity that is formed to generate revenue by Two or more persons enter into a legal agreement (a partnership deed). Risk and duties are shared among the partners, reducing the strain on a single partner. Every partner is severally and jointly liable with all the other partners for all acts they do in the firm while he/she is a partner.
The share of profit after taxes (PAT) received by the partners in their profit sharing ratio will be exempted under section 10(2A) of the IncomeTax Act 1961.
Feel delighted to take your move of faith with your trusted ones; TAX BARR will get your business registered for partnership by providing fast service at an affordable price.
Note: A Partnership Firm is eligible for Startup India registration under the Startup India Initiative scheme undertaken by the Government of India.
Benefits of Registering Partnership Firm:
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Ownership & Shared Responsibilities
The partners share equal responsibility for the firm's activities and management. A partnership deed is used to assign one or more partners responsibility for a particular sector or job.
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Operating Flexibility
A partnership business runs based on the Partnership deed, which the partners jointly execute. As long as the written agreement covers it, the partners have no constraints or restrictions in running the firm. The documents can be amended to meet requirements even after completing a partnership deed.
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Various Financial Returns and Fundraising
Partners in a partnership are rewarded for their capital and individual contributions. The working Partner has a right to remuneration in addition to the interest on capital and profit-sharing agreed upon by the partners.
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Minimum Compliance
There is no need to engage an auditor for general partnerships, nor essential to file yearly accounts with the registrar even if the firm is registered or unregistered. When compared to a company or LLP, a firm’s annual compliances are minimal.
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Simple To Begin
A general partnership can be created in 2-4 business days with an unregistered partnership deed.
In a Partnership business, decision-making is faster. The Partners of Partnership firms in India can enjoy a wide range of powers to handle any business based on the Partner's consent.
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Documents required:
PAN CARD
A self-attested copy of PAN Card of
all partners.
Partners Address Proof
Self- attested copy of Aadhar Card and Voter ID/ Passport/ Driving License of all partners
Business Address Proof
Utility Bill (Electricity Bill) of the place
of business
Rent Agreement and NOC
Rent Agreement and NOC from the owner of the place of business, if rented
Partnership Form
Application for registration
of Partnership (Form 1)
Affidavit
Specimen of an affidavit declaring all the details mentioned in the partnership deed and documents are accurately correct
Capital Contribution
Amount of capital contribution
by each partner