Partnership Firm
Multiply power.
Start a partnership firm with complete clarity & trust.
Easy to establish and run
- • a business structure in which two or more individuals manage and operate
- • the terms and objectives are set out in the Partnership Deed.
- • low costs, ease of setting up and minimal compliance requirements make it a sensible option for some,
- • Registration is optional for General Partnerships.
Benefits
The power of togetherness.
- • No Minimum Capital
There are no restrictions as such with respect to the minimum capital requirement in case of partnership firm. The Partnership firm can be registered even with Rs. 10,000 as total capital.
- • Easy To Form
Partnership Firm is very easy to form. It comes into existence merely by a Partnership Deed. Its registration is not mandatory. Even after formation, there are no annual filings to be done except Income tax returns.
- • Large Resources
As a partnership firm requires a minimum of two partners, there’s an availability of larger resources be it financial resources or managerial resources as compared to a proprietorship firm.
- • Scalability
Its operations are scalable. Any new partner can be introduced only by executing a supplementary partnership deed. A partner can retire or can be removed by executing a similar deed.
- • Sharing Risks
On account of its very nature, Partnership firm enables sharing of risks by more than 1 person as the profit and losses are shared by all the partners. This ensures diversified financial risks.
- • Better Tax Planning
Partnership firm is a legal tool for better tax planning. The partnership firm is a separate entity and its tax is calculated separately so it can offer remuneration and interest to working partners.
Procedure
A few simple steps to go together.
- • Complete a Checklist
- • Submit documents
- • Verification of Documents
- • Drafting & Executing Partnership Deed
- • Obtain PAN and TAN
Documents required
A few simple paper formalities.
- • Photograph of all the Partners
- • PAN Card of all the Partners
- • ID Proof of all the Partners (Driving License/Passport/Voter ID)
- • Electricity Bill or any other utility bill for the address proof of the Registered Office
Why LawDocs?
We never part ways.
- • We partner in your work but not in profit.
- • We treat all equal and guide you equally.
- • We not only complete the paper work but also share our experience.
Prices start with 6499/- (inclusive all)
FAQs
A partnership firm is an organization which is formed, owned, managed and controlled by two or more persons with a view to earn profit, each member of such a group is known as partner and collectively known as partnership firm. These firms are governed by the Indian Partnership Act, 1932.
Partnership firms are created by drafting a Partnership deed amongst the Partners.
- The name of the firm
- Name and details of all the partners
- Date of commencement of business
- The term or duration of partnership deed.
- Capital contributed by each partner
- Profit/loss sharing ratio
- Interest on capital payable to partners
- The amount drawings that can be made by each partner.
- Salary payable to partners, if any
- Rights of partners.
- Duties of partners.
- The procedure of admission or retirement of a partner
- The method used for calculating goodwill
- Preparation of accounts of the firm
- Mode of settlement of dues with a deceased partner’s executors
- The procedure to be followed in case disputes arise between partners
A partnership firm must have at least two partners. But in the banking partnership firm can have upto 10 partners, while other partnership firm can have upto 20 partners.
No, registration of a partnership is not necessary. However, for a partner to lodge a complaint or sue another partner or the firm, the partnership firm should be registered, and a partnership is to be made.
Accordion Content
Yes. The firm and all the partners are liable for the wrongful act or any kind of fraud which causes loss or injury to third parties.
- Recent photos of all Partners
- PAN Card of all Partners
- Aadhar Card of all Partners
- PAN Card of the Partnership Firm
- Proof of Constitution of Business (Partnership deed)
- Address proof of place of business (Anyone – Electricity Bill/Rent or Lease agreement/Latest Bank Statement – Not less than 2 months old)
- Letter of Authority in favour of any Partner
When the partnership deed does not enclose any provision for the duration of the partnership nor conditions for the break of the partnership, it is a partnership at will.
A partnership firm is best for a small business. Low costs, ease of setting up and minimal compliance requirements make it a sensible option for such businesses. Registration is optional for General Partnerships. It is governed by Section 4 of the Partnership Act, 1932.
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