Register Partnership Firm in India

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Firm Registration in India

Registration of Partnership Firm in India

A partnership firm is an organization formed by two or more individuals with the intention of making a profit. Each member of such a group is known as partner, and the group as a whole is referred to as partnership firm. 1932’s Indian Partnership Act governs these businesses. It is a federal law administered by the states. All partners have unlimited liability in the business, a unique characteristic. The partners are severally and jointly responsible for the firm’s obligations and the payment of all debts. This means that even a partner’s personal assets can be liquidated to pay the firm’s debts. It may serve a temporary or permanent purpose. As such, a partnership agreement can be recorded. The terms LLC, Inc, PJSC, GMBC, PTE LTD, PVT LTD, and LTD are prohibited at the end of a company’s name. Certain words are not permitted in a company’s name. Refer to the Prevention of Names and Emblems Act regarding India.

We are able to apply for a PAN card and operate a business without registering the company. It may be registered with the District Registrar’s office to demonstrate to its customers that it is a registered business.

There must be two partners in order to register a Partnership. A non-resident Indian or foreign national may become a partner in the business, but at least one partner must be an Indian local resident.

Who should register a Partnership Firm:

Small business owners where additional capital is unnecessary.

Limited Liability Partnership (LLP)

The Limited Liability Partnership (LLP) is one of the business concepts introduced by the Government of India’s Ministry of Corporate Affairs (MCA) in 2008. In contrast to a traditional partnership, a limited liability partnership has limited liability for some or all of its partners. It exhibits the characteristics of both a partnership and a corporation. In an LLP, one partner is not responsible or liable for the negligence or misconduct of another partner.

The limited liability partnership is a legal entity and alternative business structure to the corporation. Its liability is limited to its total assets, whereas the partners’ liability is limited to their capital contributions. We can say that an LLP is a hybrid of a corporation and a partnership. The Government of India’s Ministry of Corporate Affairs regulates LLP Registration. 2008 Limited Liability Partnership Act is the governing law for the LLP.

Who must register an LLP:

Those in search of traditional, brick-and-mortar businesses.

Why Must I Register My Partnership?

Listed below are the primary motives for registering a Partnership Firm.

Low Formation Cost:

At the time of incorporation, a Private Limited Company or Limited Liability Partnership incurs a significant amount of expenses, whereas a Partnership Firm can be formed with minimal expense and minimal paperwork. Registration of a Partnership Firm does not require a digital signature certificate. The annual compliance costs are significantly less than those of Private Limited Companies and Limited Liability Partnerships. A partnership is not required to submit or file documents annually with the Registrar of Firms. Whenever there is a change in the firm’s constitution, it must file paperwork with the Register.

Tax Audit & Income Split:

Income Tax Audit is not required for a Partnership Firm if its annual turnover is less than Rs. 1 Crore and Rs. 2 Crore in the case of the presumptive income scheme. There is the opportunity to split income, a significant advantage due to the tax savings that result. A maximum of sixty per cent of Book Profits may be distributed as compensation to the firm’s partners. The remuneration and interest paid to partners may be deducted when computing the firm’s income from  gains and profits from business and profession, subject to the limits prescribed by Section 40(b) of the Income Tax Act.The following table depicts the eligible retirement benefits payable to firm partners:

Flexibility:

The Partnership Deed can be drafted according to the desires of the firm’s partners. One partner may possess greater power than the others. One partner may take on the role of managing partner, overseeing marketing, finances, and day-to-day administration and business operations, while the other partner assists the managing partner. One partner may be authorized to manage the bank account, while the other serves as the sleeping partner.

Ownership, Control and Privacy:

Unlike a Corporation, a Partnership Firm’s control over business transaction decision-making is vested in the firm’s partners, and the financial information of the business is not accessible to third parties. The financials of a company are easily accessible via the MCA web portal.

Sharing of Losses:

The Partnership business structure is also relatively advantageous for small businesses, as profits and losses are shared among the firm’s partners. In the case of a Sole Proprietorship, the loss must be borne entirely by the sole proprietor, whereas in the case of a Partnership, it must be shared proportionally by both partners. Therefore, the partners may incur less loss compared to a sole proprietorship.

Registration Procedures for a Partnership

To register a Partnership Firm, there must be at least two major partners. A Non-Resident Alien or Foreign National may also become a partner in the business. A local partner should be one of the partners. Listed below are the Required Documents and Step-by-Step Registration Process for Businesses.

Documents Required

Partners Documents
  1. Partners PAN
  2. Partners ID Proofs
  3. Aadhaar Card, Voter Identification Card, Passport, or Driver's License.
  4. Partners Address Evidence:
  5. Aadhar Card,
  6. Voter Id,
  7. Passport
  8. Valid driver's license.
  9. Partners' latest passport size photograph
  10. Partners Email ids
  11. Partners Mobile Numbers Associated with Aadhar
  12. For Foreign Partners, a valid international passport, an inbound immigration stamp, and an affidavit are required.
Office Address Paperwork
  1. Proof of Registered Office Address: Current Electricity Bill
  2. A letter of no objection from the landlord.
  3. If the property is rented, the landlord will provide a rental agreement.
  4. Firm email id.

Three-Step Registration Procedure

Legal and Other Document Drafting

By means of Business Setup in India - One Hour Job

We will prepare the Partnership Deed, Form-1, and any additional supporting documents.

Online Registration with the Registry Office

Through the District Registrar's Web Portal - One-Hour Task

We will upload the documents to the web portal of the District Registrar and pay the required fee.

Certificate of Enrollment

Through online - Three to Five day

After approving the application, the District Registrar will issue the Certificate of Registration online.

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What All You Get
  • Certificate of Incorporation
  • Articles of Association
  • GST Registration
  • Import Export Code
  • Digital Signature Certificates
  • Company PAN
  • MSME Registration
  • Commencement of Business
  • Director Identification Numbers
  • Company TAN
  • PF Registration
  • Company Resolutions
  • Memorandum of Association
  • Company Bank Account
  • ESI Registration
  • Company Agreements

Why Business Setup in India?

Since our inception as an Official Company Registration Agent, we have maintained close ties with the Ministry of Corporate Affairs, Government of India. From day one, our intention has been to offer a streamlined incorporation procedure that is quick and easy to utilize. Today, our system for company registration is among the most efficient and effective in India. You can file an application for a new company name in slightly more than 5 minutes, and your firm will often be fully registered within 3-5 days. In addition to maintaining affordable pricing for company formation, we are constantly investigating new ways to bring value to our clients. We are proud to be one of the least expensive ways to establish a business in India.

We have the knowledge to advise clients on the appropriate company structure to implement. The majority of our clients want assistance registering a business limited by shares. The limited company structure is prevalent because it permits the distribution of profits to shareholders while safeguarding them through restricted liability. Our team has more than 2 decades of experience founding companies and providing corporate and secretarial services, which aids in the growth of tens of thousands of our clients’ enterprises each year.

We are tremendously passionate about the quality of our service, and we are incredibly proud of the reviews we get from our customers, as evidenced by our outstanding reviews and ratings. Continually, our team is chosen due to the value and skill for which it is renowned. We have helped form the industry by giving our customers innovative business services and packaged solutions that have grown alongside their demands.

Our clients have access to complimentary help from a team of experts. We are always prepared to assist. Throughout the registration of your Company, you will be enabled to contact us by phone or email if you require assistance.

No Hidden Charges

We believe in transparent and straightforward pricing. The price displayed is the price paid. There are no additional fees associated with business registration.

Rapid Service

You can file an application for a new company name in slightly more than 5 minutes, and your firm will often be fully registered within 3-5 days.

20 Years of Expertise

Our staff has over 2 decades of experience, making us specialists in our industry. Take the stress out of establishing your business, and rest easy knowing you have the assistance you need to thrive.

Reliable Service

Today, our customers expect exceptional service. Because of this, we are very pleased that 99 percent of our customers have rated us as "Great" or "Excellent" on Google.

Simplicity

The entire procedure, from ordering to utilizing your company registration license, is designed to be as simple and direct as possible to aid in the growth of your firm.

Privacy and Protection

Customer confidentiality and safety come first. We safeguard your financial, business, and personal information to the utmost degree.

What's Next After the Business is Registered?

Congratulations on registering your new enterprise! After registering their business, the majority of entrepreneurs do not know what to do next. The other mandatory registrations and legal compliance requirements for a Partnership Firm can be found below.

Compliance

TDS Return

Every Company required to file TDS returns must do so within 31 days at the end of each quarter to avoid incurring penalties.

PT Return

Every Company must submit its Monthly PT Return on or by the 15th day of the next month to avoid incurring penalties.

GST Returns

within 20 days of the quarter's end

Any company required to file GST returns using QRMS must do so by the deadline or face fines.

Partnership Business Return on Income

Every business must file its annual Income Tax Return using Form ITR-5 by the 30th of September.

Prior to or on the 25th of the following month, PF Returns are due.

Any business required to submit PF returns on a monthly basis must do so by the deadline to avoid incurring penalties.

ESI Returns

Prior to the 11th of November and the 11th of May

The due date for half-yearly returns for the period of April to September is the 11th of November, and for the period of October to March, it is the 11th of May.

Different Enrollments

Registration for GST

If you are a taxable seller or supplier of goods or services, you must register for GST.

Import Export Code (IEC)

 IEC Registration The Import Export Code (IEC) must be obtained if your business involves the import or export of goods or services.

FSSAI Registration

If your business deals with Food, Catering, Hotels, and Restaurants, you must submit an application for a Food License to the Food Safety and Standards Authority of India.

IPR Registration

If you wish to protect your business name, brand, literary work, or invention, you must file an application for a Trade Mark, Copyright, or Patent with India's department of Intellectual Properties.

Business Tax Registration

Companies registered in India are required to pay Business Tax. It is not required in every state; in fact, it is required in only 17 states.

Stores & Businesses Registration

Shops and businesses are required to register with their respective state's Labor Department.

Local Trade License

The new company must submit an application for a Local Business License to the local municipality or municipal corporation.

MSME Registration

To receive the benefits of The Ministry of Micro, Small, and Medium-Sized Businesses Act, it is necessary to register under this Act.

License for Mining

The company in the mining industry is required to obtain a Mining License. This is an essential requirement for Mining Companies.

PF Registration

PF Registration is required if your company is covered by the PF Act. Now that the MCA provides PF Registration along with incorporation, you are no longer required to submit a separate application; however, you will be required to enrol employees once the threshold limit is exceeded.

ESI Registration

If your Company is subject to the ESI Act, you must obtain ESI Registration. Now that the MCA provides ESI Registration along with Incorporation, you are no longer necessary to register separately; nonetheless, you must enroll employees once the threshold limit is exceeded.

PSARA License

Under the Private Security Agency Regulation Act, a license is required if your business provides security guards. This application must be submitted to the state's Home Department.

ISI Mark

If your business manufactures electrical equipment, you are required to obtain ISI Mark.

Drug License

If your company manufactures or distributes pharmaceuticals, you must obtain a Drug License from the office of the respective state's drug controller.

Registration of Chit Funds

If your business involves chit funds, you must obtain permission from the Chit Registrar of your district.

Certification ISO

You can obtain ISO Certification if you desire market credibility.

Let's Deal With Your Confusions

A partnership is an agreement between more than two individuals to share the business's profits.

Not obligatory A partnership can be operated without registration.

Yes, you can.

The capital is the initial cash or in-kind investment made by the firm's partners.

There is no fixed minimum capital required for a partnership firm.

Approximately 3 to 5 business days.

India's fees vary from state to state. Typically, Rs. 100/- is payable per portion to the government.

Yes, you can also establish a partnership from your residence.

No. The individual should be an adult.

Yes, but a witness signature is required on the application forms. Before submitting an application for firm registration, it is advisable to contact a consultant such as ourselves.

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