SERVICESPartnership Registration
Registration of Partnership:
Partnership involves a contract between the partners to engage in a business or profession with a view to earn profit. As agreed, each partner contributes either in cash or in kind.
To put in simplest form, a partnership is an agreement between two or more persons. It needs not be in writing or registered and may be oral.
Do you know that a General Partnership consists of a minimum of two people who agree to manage a business based on the terms and conditions set in a Partnership Deed.
What are you waiting for! Start your Partnership Firm swiftly with our experience of 5+ years of delivering quality professional services. We will extend our support to register your partnership firm across India along with documentation, preparation, filing, and subsequent follow-up with the registrar of firms.
ENTITY COMPARISON GUIDE
ENTITY COMPARISON GUIDE
| TYPE | PROPRIETORSHIP | PARTNERSHIP | LLP | PVT | OPC |
| Members | Maximum 1 | 2 - 20 | 2- Unlimited | 2-200 | 1 |
| Legal Status of Entity | Not Considered as separate Legal entity | Not Considered as separate Legal entity | Considered as separate Legal entity | Considered as separate Legal entity | Considered as separate Legal entity |
| Members Liability | Unlimited Liability | Unlimited Liability | Liability of its members is limited | Limited to the extent of share capital | Limited to the extent of share capital |
| Registration | Not Compulsory | Optional/ Can be Registered under partnership Act 1932 | Registered Under MCA | Registered Under MCA | Registered Under MCA and Companies Act 2013 |
| Transferability Option | Not Allowed | Not Allowed | Can Be Transferred | Can Be Transferred | Allowed to only one person |
| Taxation | As in Individual | 30% of Company Profit | 30% of Profit Plus CESS and Surcharges applicable | 30% of Profit Plus CESS and Surcharges applicable | 30% of Profit Plus CESS and Surcharges applicable |
| Annual Filings | Income Tax Returns with the Registrar of companies | Income Tax Returns with the Registrar of companies | Filed with the registrar of the company | Filed with the registrar of the company | Filed with the registrar of the company |
Step-by-Step procedure of registering a Partnership firm in India:
- Step 1: Application for Registration
- Step 2: Choose the legalized name of the Firm
- Step 3: Certificate of Registration
Frequently Asked Question(FAQ)
The registration of a partnership firm can be done in 7-10 days. However, the said time frame could vary in accordance with the regulations of the concerned state.
A partnership firm may cease to exist in the following cases:
- Absence of a partnership deed
- Partners fail to conduct business in accordance with the underlying object of the Firm
- Business undertakings of the Firm seem illicit
- Insolvency of the partners
Dissolving a partnership firm simply refers to a discontinuation of a business under the name of the said Firm. In this scenario, all liabilities are addressed either by selling off assets or transferring them to the concerned partner, settling all accounts with the partnership firm.
Common events in which partners can opt for partnership firm dissolution are:
- Death of partner
- Expiry of the partnership tenure
- Completion of a task
- If all the partners want to dissolve the Firm on priority, they can proceed accordingly pursuant to clauses mentioned in the deed. That is the easiest and safest way to dissolve a partnership firm in India
Well, from a legal standpoint, Partnership registration is an absolute necessity. The unregistered partnership firms are more susceptible to unexpected dissolution and have a weaker legal base.
Partnership firms are bound to comply with the provisions of the Partnership Act, 1932. The registration of such firms is in the hand of the Registrar of firms of the respective state.
Presently, GST registration is mandated for all sorts of businesses except NGOs*. The applicability of GST depends on the annual turnover of the entity. The second criterion that decides the GST imposition is the inter-state supply. For details refer section 22 and 24 of CGST Act, 2017.
The unregistered partnership firm does not have the following leverages which ultimately strengthen its legal standing:
- Suing defaulter in case legal dispute
- Access to possible tax exemption
- Seamless dissolution of Firm
- Clarity on rights and obligations