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Partnership

Online partnership firm registration in India at Rs.5499 only with Tax Rupees. Best online partnership registration company in India.

Basic Plan

Basic Plan

5499 incl. GST
8460 (35% off)
  • Partnership Deed Drafting
  • GST Registration
Get Started
Standard Plan

Standard Plan

12499 incl. GST
16665 (25% off)
  • Partnership Deed Drafting
  • GST Registration
  • Trademark Registration
Get Started
Premium Plan

Premium Plan

15499 incl. GST
25830 (40% off)
  • Partnership Deed Drafting
  • GST Registration
  • 1 year GST Filing
Get Started
Partnership

Documents Required For Partnership

Aadhar Card
Id Proof of Landlord/Landlady (Self Attested)
Id Proof of Witnesses (Self Attested)
Latest Electricity Bill (not older than 1 month)
No Objection Certificate (NOC)
PAN Card
Passport Size Photo
Rent Agreement (if electricity bill not in name of proprietor)

Partnership Firm Registration

A partnership firm is a business entity formed by two or more people who come together to carry on a trade or business. Partnership firms have certain advantages and disadvantages as compared to other business entities. The steps involved in starting a partnership firm in India are relatively simple and straightforward. The benefits of starting a partnership firm include increased capital, shared liability, pooling of resources, and flexibility in management.

A partnership is a form of business organization in which two or more people work together to achieve a common goal. Each partner contributes some form of capital, labor, or skill to the venture and shares in the profits or losses generated by the business.

There are three different types of partners in a partnership firm: general partners, limited partners, and sleeping partners. General partners are responsible for the day-to-day management of the business and have unlimited liability for its debts and obligations. Limited partners are only liable up to the amount they have invested in the business and do not take an active role in its management. Sleeping partners are not involved in the management of the business but still share in its profits or losses.

The different classes of partners in a partnership firm play an important role in determining the success or failure of the business. It is important to choose the right mix of partners to ensure that all stakeholders have a vested interest in seeing the business succeed.

What is a partnership firm?

A partnership firm is a business entity formed by two or more people who come together to carry on a trade or business. The partners contribute money, property, labor, or skill, and share the profits and losses of the business.
 
There are two types of partnership firms in India: registered and unregistered. A registered partnership firm must be registered with the Registrar of Companies (ROC), while an unregistered partnership firm does not need to be registered.
 
The main advantage of starting a partnership firm is that it is relatively easy and inexpensive to set up. Additionally, the partners have flexibility in management and can pool their resources to increase capital. However, there are also some disadvantages to consider, such as shared liability among the partners and potential disagreements between them.
 

The steps involved in starting a partnership firm in India

Choose your business structure

When choosing a business structure, you need to consider the types of business activities you will be undertaking, the level of liability you are comfortable with, and the amount of paperwork you are willing to deal with. The most common business structures in India are sole proprietorships, partnership firms, limited liability partnerships (LLPs), and private limited companies.
 

Register your business

Once you have chosen your business structure, you need to register your business with the Registrar of Companies (ROC). This is a legal requirement for all businesses in India except for sole proprietorships. The process of registration can be completed online through the Ministry of Corporate Affairs website.
 

Obtain the required licenses and permits

Depending on the type of business you are running, you may need to obtain certain licenses and permits from the government in order to operate legally. For example, if you are starting a restaurant, you will need to obtain a food license from the Food Safety and Standards Authority of India (FSSAI).
 

Open a bank account

Opening a bank account is an important step in setting up any business, as it allows you to keep track of your finances and separate your personal and business expenses. When opening a bank account for your business, make sure to choose an account that offers features such as online banking and mobile banking facilities.
 

Create a partnership agreement

A partnership agreement is a contract between partners that outlines their roles and responsibilities within the partnership, as well as how profits and losses will be shared among them. This agreement should be created before starting any business activities, so that there is no confusion or misunderstanding later on down the road.
 

The benefits of starting a partnership firm in India

Flexibility in management

A partnership firm offers flexibility in management as compared to a sole proprietorship or a private limited company. This is because there are two or more partners who can take decisions regarding the operation of the business. In a sole proprietorship, the decision-making power lies with the owner only, and in a private limited company, it lies with the board of directors.
 

Increased capital

Another benefit of starting a partnership firm in India is that it helps to raise capital more easily as compared to other business structures. This is because when there are two or more partners, they can pool in their resources and funds to start the business. Moreover, they can also approach banks and financial institutions for loans and investments.
 

Shared liability

In a partnership firm, the liability of each partner is limited to their share of investment in the business. This means that if the business incurs any debts or losses, the personal assets of the partners will not be at risk. However, in a sole proprietorship or a private limited company, the owner or directors may be held liable for the debts and losses of the business.
 

Pooling of resources.

Another advantage of starting a partnership firm is that it enables partners to pool their resources together. This includes both financial and non-financial resources such as knowledge, skills, experience, contacts, etc. which can be used for the benefit of the business.
 

Distinction between Partnership and Firm

There are a few key distinctions between partnerships and firms. For one, partnerships tend to be smaller and more informal than firms. Partnerships also have less structure and hierarchy than firms. Additionally, partnerships are typically less expensive to start and maintain than firms. Finally, partnerships tend to be more focused on a specific industry or market than firms.
 

Types of Partnership

A partnership is a legal relationship between two or more people who agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, groups, or organizations. Partnerships are a key part of the business world, and there are many different types of partnerships. The most common type of partnership is a general partnership, which is created when two or more people come together to carry on a business. Other types of partnerships include limited partnerships, limited liability partnerships, and joint ventures.
 

Types of Partners

General partners

A general partner is an individual who has unlimited liability for the debts and obligations of the partnership. In other words, a general partner is jointly and severally liable with all the other general partners for any debts or liabilities incurred by the partnership. The important thing to remember about general partners is that they have unlimited personal liability for the debts and obligations of the partnership. This means that if the partnership can't pay its debts, the creditors can go after the personal assets of any or all of the general partners.
 

Limited partners

A limited partner is an individual whose liability for the debts and obligations of the partnership is limited to a specific amount. Limited partners are not personally liable for any debts or obligations beyond their initial investment in the partnership. Unlike general partners, limited partners do not have any management duties or control over day-to-day operations.
 

Sleeping partners

A sleeping partner is an individual who invests money in a partnership but takes no active part in running the business. Sleeping partners are usually limited partners, which means that their liability is limited to their initial investment in the partnership.
 
It is important to understand the different classes of partners in a partnership firm in order to determine the level of liability and control each partner will have. General partners are liable for all debts and obligations of the partnership, while limited partners are only liable up to the amount they have invested. Sleeping partners are not actively involved in the business but may still be liable for its debts.
Each class of partner provides different benefits and drawbacks, so it is important to choose the right mix of partners for your business. Consider your business goals and objectives carefully before entering into a partnership agreement.
 
 
If you're considering starting a business in India, a partnership firm may be the right choice for you. With some advance planning and careful execution, you can set up a partnership firm in India and reap the benefits of increased capital, shared liability, and flexible management. Keep in mind that there are some disadvantages to consider as well, such as the potential for disagreements among partners. Ultimately, though, if you do your research and put together a solid plan, a partnership firm can be a great way to get your business up and running in India.
 

Get partnership registration in online with Tax Rupees

Did you know that you can now register for partnership in online with Tax Rupees?
Yes, that’s right!
We are a leading provider of online partnership registration services in . We can help you obtain your partnership registration certificate and trade license quickly and easily.
We also offer a range of other services such as company formation, GST registration, and trademark registration.
So what are you waiting for? Contact us today to get started!

FAQ

If you don't see an answer to your question, you can send us an email from our contact form.

In a Partnership firm, at least 2 individuals are required and a limit of 20 partner are allowed.

A person who is an Indian resident and a resident of India can partner in a Partnership firm. Alien Indians and Individuals having a place with Indian Origin can put resources into a Partnership just with the acceptance of the Government.

For the partner, it is important to present a PAN card alongside the personality and address verification. It is prescribed to draft a Partnership Deed which is to be accepted by every one of the Partners.

A Partnership firm can be begun with any measure of capital. There is no base necessity accordingly.

It is truly fitting to enlist a Partnership firm as a Registered Partnership Firm can record a suit in any court against any of the Partners or firm for the requirement of any right arising from the agreement alluded by the Partnership Act. Likewise, just a Registered Partnership Firm can guarantee set-off or different procedures in a debate with a party.

The Partnership firm and the accomplices are something similar according to the law. In Partnership firms, the responsibility of the Partners is additionally limitless and every one of the Partners are supposed to be mutually and severally liable for the liabilities of the firm. Consequently, No Partnership firm doesn't have separate lawful presence of its own.

A Partnership Firm should record the profits of Income independent of the quantity of benefits or losses made by the Partners..
 

There are limitations on the Transfer of owner interest in a Partnership Firm. A Partner can't move their advantage in the firm to any individual without the assent of any remaining partner.

There are limitations on the Transfer of owner interest in a Partnership Firm. A Partner can't move their advantage in the firm to any individual without the assent of any remaining partner.

The Partnership deed sets out every one of the Terms and Conditions of the Partnerships. As it manages the freedoms and obligations of each partner. A Partnership deed is an extremely vital archive.

There are limitations on the exchange of the Partnership Firm. A Partner can't move his/her advantage in the firm to anybody without the assent of any remaining partner.

On account of Partnerships, it isn't important to plan inspected budget summaries every year. hence, an expense review might be important in view of turnover and different rules.

Yes, there's a predetermined technique for changing over a Partnership firm into a Company or LLP. Hence, the technique is exceptionally bulky and tedious. It will be wise assuming a business person considers beginning a LLP or a Company rather than a Partnership firm.

To open a ledger for a Partnership firm a registered Partnership deed alongside a personality verification and address confirmation of the Partner is to be given.

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Features and Advantages of Various Business Entities

Features Proprietorship Partnership LLP Company
Definition Unregistered type of business entity managed by one single person A formal agreement between two or more parties to manage and operate a business A Limited Liability Partnership is a hybrid combination having features similar to a partnership firm and liabilities similar to a company. Registered type of entity with limited liability to the owners and shareholders
Ownership
  • Sole Ownership
  • Min 2 Partners
  • Max 50 Partners
  • Designated Partners
  • Min 2 Directors
  • Min 2 Shareholders
  • Max 15 Directors
  • Max 200 Shareholders
For One Person Company
  • 1 Director
  • 1 Nominee Director
Registration Time 7-9 working days
Promoter Liability Unlimited Liability Limited Liability
Documentation
  • MSME
  • GST Registration
  • Partnership Deed
  • LLP Deed
  • Incorporation Certificate
  • MOA
  • AOA
  • Incorporation Certificate
Governance - Under Partnership Act LLP Act, 2008 Under Companies Act,2013
Transferability Non Transferable Transferable if registered under ROF Transferable
Compliance Requirements
  • Income tax filing if turnover is more than Rs.2.5 lakhs
  • ITR 5
  • Form 11
  • Form 8
  • ITR 5
  • ITR 6
  • MCA filing
  • Auditor'sappointment

Partnership Registration in City