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Partnership

Overview:

A Partnership firm is a business entity created by persons who have agreed to share profits or loss of the business. Partnerships are a very good choice of business entity for small enterprises wherein two or more persons decide to contribute to a business and share the profits or losses. In India, Partnerships are widely prevalent because of its ease of formation and minimal regulatory compliance. Also, the concept of LLP was introduced only in 2010, whereas the Partnership Act, 1932 has been in existence before the independence of India. Hence, partnership firms are the most prevalent type of business entity whereas owned, managed and controlled by an Association of People for profit.

There are two types of Partnership firms, registered and un-registered Partnership firm. It is not compulsory to register a Partnership firm; however, it is advisable to register a Partnership firm due to the added advantages. Partnership firms are created by drafting a Partnership deed amongst the Partners and R R H & Associates can help start a registered or un-registered Partnership firm in India.

Procedure to be followed for starting Partnership:

A partnership firm can be registered under Section 58 of the Indian Partnership Act at any time, even subsequent to the formation. The registration of a partnership firm is done through the Registrar of Firm in which the partnership firm is situated. When the Registrar of Firms is satisfied that the provisions of Section 58 are complied with, a record of entry of the statement is made in the Register of Firms and Certificate of Registration is issued.

Documents Required for Registration of Partnership Firm:

The application for registration of Partnership Firm must contain the prescribed registration form for incorporation of a company, identity proof/address proof of Partners, certified a true copy of the Partnership deed entered into and proof of the principal place of business.

As identity and address proof of the Partners, any of the following two documents can be submitted:

  1. Copy of PAN Card.
  2. Copy of Passport.
  3. Copy of Drivers License.
  4. Copy of Aadhar Card.
  5. Copy of Voters ID.

Proof of the principal place of business can be established by submitting the following documents:

  1. Sale deed in case one of the Partner owns the place of business.
  2. Rental agreement copy if the premises are rented.
  3. Copy of latest electricity bill or water bill or property tax receipt.