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Partnership Firm Registration
Get your partnership firm registered from Zebotax, one of the best partnership firm registration consultants in India. Just Scroll down to know the Partnership Firm registration process in India.
Documents Needed for Partnership Firm Registration in India
- Pan card & Aadhar Card of partners as proof of identity
- 1 Colour Photograph of each Directors
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Place of Business Proof (any one) + NOC (if any)
Electricity Bill / Mobile Bill / Landline Bill / Gas Bill - Stamp Paper as per the State
Steps Involved in Partnership Firm Registration in India
The process for registering a partnership firm in India involves simple three steps…
Drafting
We will draft the Partnership Deed and other applicable documents and get it verified and signed by the partners.
Form Filling
We will then file the application for Partnership registration on the respective portal and attach required documents
Getting Certificate
Once your partnership firm get registered we will provide you the Registration certificate.
More Insights on Partnership Firm Registration
- Minimum and maximum partners : The partnership act does not prescribe the criteria of minimum and maximum partners. But as per the Companies (Miscellaneous) Rules, 2014 the minimum number of partners should be at least 2 and maximum number of members in a partnership firm is 50. The. The maximum number of members for a firm carrying banking business is 20.
- Partnership with no capital : Legally no minimum capital prescribed. So, to start a Partnership firm, you need to plan the future expenses and raise capital accordingly. However, any amount capital could be introduced in the form of Partners Contribution and the same shall be mentioned in the Partnership deed, as executed between the Partners.
- Partnership Firms Tax Rate : Partnership firms are liable to pay income tax at the rate of 30% of total income. In addition to the income tax, a partnership firm is also liable to pay income tax surcharge on the amount of income tax at the rate of 12%, when total income exceeds Rs.1 crores. In addition to the income tax and surcharge, a partnership firm must pay education cess and secondary higher education cess
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Disadvantages of not registering Partnership Firm :
The firm or other co-partners can not file case against any third party: If the firm registration is not done, then the firm or any other person on its behalf cannot file a suit against a third party for breach of contract which the firm has entered into. Further, the person filing the suit on behalf of the firm should be in the register of the firm as a partner.
No relief to partners for set-off of claim: Without firm registration, any action brought against the firm by a third party having a value of more than Rs. 100 cannot be set-off by the firm or any of its partners. Pursuance of other proceedings to enforce rights arising from the contract cannot be done either.
Third party can sue the firm: Even if the firm registration is not done a third party can bring legal action against the firm.
- Starting from Rs. 1,499/- Only
(Professional Fees)
Frequently Asked Questions
Advantages of Partnership Firm Registration
Easy to Start
Partnership firms are one of the easiest modes to start. The only requirement for starting a partnership firm in most cases is a partnership deed. Hence, a partnership firm can be started on the same day.
Faster Decision making
Decision making in a partnership firm could be faster as there is no concept of the passing of resolutions.
Raising of Funds
When compared to a proprietorship firm, a partnership firm can easily raise funds. Multiple partners can come forward for more feasible contributions.
Sense of Ownership
Every partner owns and manages the activities of their firm. Ownership creates a higher sense of accountability, which paves the way for a diligent workforce.
Firm can file legal case
If partnership firm is registered under partnership Act it has authority to file any legal case against the third party
Less Compliance
The Partnership firm has minimal requirements of completing the compliance as compared to LLP
Difference between LLP and Partnership Firm
| Basis | Limited Liability Partnership | Partnership Firm |
|---|---|---|
| Registration Requirement | It is mandatory to get the entity registered under LLP Act, 2008 | It can be registered as well as unregistered |
| Number of members | Partners can be unlimited | 2 -50 partners |
| Number of Director | 2 designated partners | NA |
| Naming of Entity | The name should be unique and no trademark should exist on the name. The name should end with LLP. | There are no naming guidelines. |
| Capital Requirement | No minimum capital requirement | No minimum capital requirement |
| Liability of Entities | Limited Liability | Unlimited Liability |
| Foreign Investment | LLP is eligible to accept Foreign Direct Investment in accordance with the RBI norms. | Not Allowed |
| Statutory Audit | Audit is compulsory if the contribution more than Rs. 25 lakhs or turnover exceeds Rs. 40 Lakhs | It is not required but tax audit is applicable on the basis of turnover as prescribed under IT Act. |
| Compliance Level | LLP has to file annual returns and statements every year. | The compliances are very less and have to just file ITR of the partnership firm. |
| Tax Rate | Tax Applicable : 30% | Tax Applicable : 30% |
BUSINESS REGISTRATIONS
- LLP (Limited Liability Partnership)
- OPC (One Person Company)
- Section 8 Company
- Farmer Producer Company
- Nidhi Company
OTHER REGISTRATIONS
- Trademark Registration
- GST Registration
- Profession Tax Registration
- ISO Registration
- PF & ESIC Registration
CERTIFICATIONS & OTHERS
- Digital Signature (DSC)
- Startup Registration
- Shop Act License
- Food License
- Import Export License (IE Code)
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