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+91- 8422985681
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09833628008
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hr@kshitijgroup.com
Partnership Firm Registration
A Partnership Firm is an organization which is formed with two or more persons to run a business 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. The above is established in terms of written agreement marking the commitment of the individuals involved by “Partnership deed” is governed by Partnership Act, 1932. The thus established agreement would signify business, politics, knowledge or individual level relationship professionally.
A partnership deed also called as a partnership agreement is a record that outlines in details the rights and functionalities of all parties to a business operation. It has the force of law and is designed to guide the partners in the conduct of the business.
Partnerships present the involved parties with complex negotiation and special challenges that must be navigated unto agreement. Overarching goals, levels of give-and-take, areas of responsibility, lines of authority and succession, how success is evaluated and distributed, and often a variety of other factors must all be negotiated. Once agreement is reached, the partnership is typically enforceable by civil law, especially if well documented. Partners who wish to make their agreement affirmatively explicit and enforceable typically draw up Articles of Partnership. Trust and pragmatism are also essential as it cannot be expected that everything can be written in the initial partnership agreement, therefore quality governance and clear communication are critical success factors in the long run. It is common for information about formally partnered entities to be made public, such as through a press release, a newspaper ad, or public records laws.
At Kshitij T&L Consultancy we provide you a hassle free registration process which would be dealt by our professionals within a time frame of 10-12 working days and is subjective to governmental processing time. Our team takes care of the documentation and aids in provide you the realistic estimation of cost.
Advantages of having partnership firm
1. Easy to Start
Partnership firms are one of the easiest to start. The only requirement for starting a partnership firm in most cases is a partnership deed. Hence, a partnership can be started on the same day. On the other hand, an LLP registration would take about 5 to 10 working days, as the digital signatures, DIN, Name Approval and Incorporation must be obtained from the MCA.
2. Decision Making
Decision making is the crux of any organization. Decision making in a partnership firm could be faster as there is no concept of the passing of resolutions. The partners in a partnership firm enjoy a wide range of powers and in most cases can undertake any transaction on behalf of the partnership firm without the consent of other partners.
3. Raising of Funds
When compared to a proprietorship firm, a partnership firm can easily raise funds. Multiple partners make for more feasible contribution among the partners. Moreover, banks also view a partnership more favourably while sanctioning credit facilities instead of a proprietorship firm.
4. Sense of Ownership
Every partner owns and manages the activities of their firm. Their tasks might be varied in nature but people in a partnership firm are united for a common cause. Ownership creates a higher sense of accountability, which paves the way for a diligent workforce.
Documentation required for Partnership Firm
PAN card of Partners
Address Proof of Partners
Utility Bill as Business Address Proof
Rent/ Lease agreement of business address and NOC from owner (if)
Partnership Deed
Sale Deed (if owned)
Current account bank details of firm
NOC
Call Us at : 8422985681 / 9833628008
PACKAGES
Basic
3,999/-
All Inclusive
Drafting Partnership Deed
PAN&TAN
Premium
14999/-
All Inclusive
Drafting Partnership Deed
Deed Registration (ROF)
PAN & TAN
GST Registration
Udyog Aadhaar Registration (MSME)
Standard
9999/-
All Inclusive
Drafting Partnership Deed
Deed Registration
PAN & TAN
Note:
- The above price might vary as per the deed and amount of contribution
- Trademark filing excludes government fees
Process involved in registering your firm
Analyzing and understanding your business model
The first step is to understand your business core in order to know the terms and conditions within and outs that your firm requires.Preparing the documentation
Our team prepares the documentation required for your firm with clauses and applies the same with the concerned registrar.Obtaining the PAN and TAN
Once the application is accepted and the certificate of incorporation is issued by the registrar, the PAN and TAN are applied under your firm name.Why Partnership firm ?
They are the best way to kickstart your business as they are minimal and cost effective.
Legal way of pooling in resources to put forward the business.
The company would be flexible as the partners are limited and the decision with prior notice can be made to be in effective with a short period of time with the consent of the partners.
The deed acts as a protection for equal rights and also against fraud.
Equal distribution of risk among the partners.
Risk is shared among partners, resulting in more risk taking decisions for business expansion.
Type of Partnership firms in India
Unregistered Partnership Firm
In this scenario the partners would proceed with the operations of the business as stated in
the agreement and the firm is not established i.e registered with the registrar.
Registered Partnership Firm
In this scenario we are looking at a setup where the actual firm is registered under the
registrar and falls under the rules of the jurisdiction hence the total set up is legally for the
place of business of the firm.
Is Partnership firm registration mandatory ?
It is not mandatory according to Indian law to register a partnership firm but, it is advisable as the benefits are there for functioning as a registered partnership firm, this does not directly mean that it discredits the transaction being done in unregistered agreement basis establishment.
- Privilege to firm : Only a legally registered firm is entice to take legal actions on third party in-case of any such situation arises and at the same time it is easy to mould the business and branch out.
- Privilege to partners : The partners are legally covered in terms of law as in the case of registered partnership firm, the internal dispute can be settled in a fair legal manner and this applies for the same with third party matters too.
- Privilege to creditors : In this case, the money the firm owes to the third party would be the responsibility of all the individuals who are part of the set firm, hence they are liable equally.
- There must be a minimum of 3 board directors.
- Privilege to incoming and outgoing partners : The actual matters involving the incoming and outgoing partners covering both death and retirement. They can fight for the privileges they had with the company, but this is only backed up legally if the firm is registered at the first place.
Mandatory requirements for Partnership firm formation
The Name decided for the firm.
The place where the firm would be established out of.
The list containing the Name, address and date of joining of the partners for forming the firm.
If the firm is started to address for a particular period alone then the time frame should be mentioned.
The actual objective of the firm must be provided if at all any are present.
profit sharing ratio and capital contribution among partners.
FAQ’s About Partnership Firm
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How long would the actual registration process span ?
The registration would take anywhere between 10-15 working days and is actually subjective to the registrar. -
Can a NRI or Non Indian Citizen be a part of a firm ?
Yes, they can be part of the firm as long as their proof clears the requirement of the registrar. -
Should the capital be put forward equally ?
No, there is no such rule, the capital that is put forward initially for the establishment of the business are more based on the mutual consent and the actual agreement the partners decided on. -
Can a person part of the firm transfer his interest to outside ?
Yes, it is legally possible but only with the unanimous agreement of the rest of the partners. -
What are my limitations as a partner in a partnership firm?
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As a partner you cannot do the following without the consent of the other partners:
- 1. Submit a dispute relating to the business to arbitration.
- 2. Open a bank account on behalf of the firm in your own name.
- 3. Compromise or relinquish any claim or portion of a claim of the firm.
- 4. Withdraw a suit or proceeding filed on behalf of the firm.
- 5. Enter into partnership with an outsider on behalf of the firm.
- 6. Acquire or transfer immovable property belonging to the firm.
- 7. Admit any liability in a suit or proceeding against the firm.
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Can a new partner be a part of the firm ?
- The actual process and provisions are based upon the partnership deed that was put forward while the business was established.
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WHY CHOOSE Kshitij T & L Consultancy ?
Well with highly qualified professionals in our team along with the technology gives edge over others, as a result highly rated professional services with full customer satisfaction is assured. We help to grow and manage your business letting you to concentrate on your business.
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