Process of Registration by Taxhub
Upload the basic Documents
Choose your Requisite plan and pay the Fees
Taxhub will draft Partnership Deed and send it for signing
Assistance in opening of Bank Account
Get Your Business Docket
What is a Partnership Firm?
Partnership is an association of two or more persons to carry on a business in the capacity of co-owners. Each such person is called a partner. All the partners share the profits and losses in proportion of their respective ownership, or as agreed between them.
In India, all the aspects and functions of the partnership are administered under ‘The Indian Partnership Act 1932’. This specific law explains that partnership is an association between two or more individuals or parties who have accepted to share the profits generated from the business under the supervision of all the members or behalf of other members.
Persons who have entered into partnership with one another to carry on a business are individually called “Partners“; collectively called as a “Partnership Firm”; and the name under which their business is carried on is called the “Firm Name”.
Types of Partnership Firm
The following are the different partnership types in India. You can choose one structure as per your requirements:
• General Partnership
In this type, each partner gets equal rights on how to manage and run the firm.
A General Partnership can be of the following two types:
• Partnership at will
In this type of partnership, there is no closure time limit set, and the partners decide how long they want the partnership to last with mutual agreement.
• Particular Partnership
The particular partnership is formed for the accomplishment of a particular work. The work can be a short-term contract or for a specific business only.
• Limited Liability Partnership (LLP)
In this partnership, each partner has limited liability as per their capital contribution. Limited Liability Partnership Act, 2008 governs this partnership and not the Partnership Act 1932.
Basic Documents Required
- Copy of Pan Card of Partners (As Identity Proof)
- Copy of any one i.e Aadhar Card, Voter ID, Passport and Driving License (As Address Proof)
If Property is owned by any Partner or his relative:-
- Copy of Sale Deed of the Property
- Copy of any one utility bill i.e. Electricity/Telephone/Gas/Water/Mobile
- NOC from the Owner (Taxhub will provide a draft copy)
- Copy of Rent Agreement
- Copy of any one utility bill i.e. Electricity/Telephone/Gas/Water/Mobile
- NOC from the landlord (Taxhub will provide a draft copy)
2,499/-
All Inclusive Fees
| Draft & Execute Partnership Deed |
| Stamp Paper Purchase* |
| Obtain Firm PAN/TAN |
Extra Charges Applicable for Partnership Firm registration with Registrar of firm of the Respective State. (Optional Process after Documentation work) * Stamp Paper includes of Minimum Value i..e ₹ 200/- (only)
4,499/-
All Inclusive Fees
| Draft & Execute Partnership Deed |
| Stamp Paper Purchase* |
| Obtain Firm PAN/TAN |
| GST Registration |
| MSME (Aadhar Udyog) Registration |
Extra Charges Applicable for Partnership Firm registration with Registrar of firm of the Respective State. (Optional Process after Documentation work) * Stamp Paper includes of Minimum Value i..e ₹ 200/- (only)
6,499/-
All Inclusive Fees
| Draft & Execute Partnership Deed |
| Stamp Paper Purchase* |
| Obtain Firm PAN/TAN |
| GST Registration |
| MSME (Aadhar Udyog) Registration |
| GST Returns 3 Months |
Extra Charges Applicable for Partnership Firm registration with Registrar of firm of the Respective State. (Optional Process after Documentation work) * Stamp Paper includes of Minimum Value i..e ₹ 200/- (only)
Beneifts of Partnership Registration in India
Any two persons capable of entering into contract can start partnership. The partnership deed can be oral or written. Registration is not compulsory. Thus, partnership is very easy to form.
There is considerable freedom in carrying out business operations. There is no need for taking approvals from Government or any other authority, to change the nature, scope or location of the business.
Partnerships are often formal by people looking for advantages of synergy. If one partner has technical knowledge, other could be marketing or finance expert. Thus, the managerial resources of the firm are enhanced. The financial resources available with the firm enables the firm to employ a good manager on salary basis for taking care of the business in a professional manner.
In a partnership, the day to day management might be taken care of by one or few partners. However, in case of major issues, partners are likely to discuss the circumstances and arrive at a balanced judgement. Decisions are unlikely to be taken in haste, or in emotion.
It is very easy to dissolve the partnership firm. Any partner can ask for dissolution of firm by giving a 14 day notice. The firm can be dissolved on death, insolvency or lunacy of any partner. No legal formalities are required.
The Income Tax Act, 1961 treats a Partnership as a separate ‘person’ and its tax is calculated separately. This allows scope for partners to do tax planning and reduce total tax payable to minimum.
Shares of a company are movable property and thus can be transferred like any other property. A public company can freely transfer its shares, but there are some restrictions.
The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted.
