How to Start a Partnership Firm Archives

The Partnership Firm is one of the common business forms in India. Starting a partnership firm in India requires a specific set of procedures. Find complete information on how to register a partnership business in India. For more details, contact ebizfiling for reliable partnership business registration services. The form has lost its popularity after the introduction of the LLP in 2008. The main reason of this is the unlimited liability offered by the general partnership. But the cost-effectiveness and least compliances are still making it a good option. How to Start a Partnership Firm A step-by-step guide to form a partnership firm in India. Partnership business is quite simple to start. It requires fewer compliances and documents compared to the company form. First of all, you need to choose the name of your firm. A partnership deed is prepared thereafter. The partnership deed should be in a written form. The deed contains all the details like name and address of the firm. It also contains information about the partners and the profit sharing ratio. If the partnership is only for a fixed period, the duration is also necessary. The partners can also add any additional clause or information in the deed if they require. The additional clause contains details like salaries, commissions, and interest. It may also include the duties and power of all the partners. The deed should be on a stamp paper as per the rules of Indian Stamp Act. The partnership deed needs a registration from the Registrar of Firms. Though the registration of the deed is not mandatory, it is preferable. In the case of the disputes, registration becomes mandatory by the Indian Court of Law. Procedure of Partnership Registration According to the Indian Partnership Act, the registration of the firm is optional. The registration of the agreement is mutually decided by the partners. But registration is necessary to enjoy certain benefits. The registration procedure of the partnership deed does not need legal formalities. An applicant needs to apply for the registration by filing Form no. 1 And it is to be Submitted to the Registrar of Firms of the relevant state. The supporting documents are duly stamped and notarized deed and an Affidavit. The affidavit declares the partner’s intention to join the firm. A proof of the ownership or lease agreement of the business premises is also required. Apart from these basic documents, the Registrar of Firm may ask for any other document depending on the State. All the partners must sign the application form. After verification of the documents, the Registrar of Firms issues the registration certificate. Application for PAN Card is to be done and a bank account can be opened on the name of the partnership firm. All your requirements for partnership firm registration are available at ebizfiling.com Apply Online for Partnership Firm Registration in India Contact us for a hassle-free and affordable Partnership Registration in Mumbai, Delhi, Chennai, Bangalore, Pune, Hyderabad, Indore, Nagpur, Kanpur, Rajkot, Surat, Ahmedabad.

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