What is Partnership Firm Incorporation Overview
A General Partnership is a business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in the Partnership Deed. This structure is thought to have lost its relevance since the introduction of the Limited Liability Partnership (LLP) because its partners have unlimited liability, which means they are personally liable for the debts of the business in case of any adverse scenario. However, low costs, ease of setting up and minimal compliance requirements make it a sensible option for some, such as home businesses that are unlikely to take on any debt. Indian Partnership Act 1932 is the governing law which regulates the partnership firms in India.As per the act “Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all”. Maximum number of members in a partnership is 10 for a banking business and 20 for other businesses to enter into a partnership firm. Registration is optional for General Partnerships. Contact our MeraProfit experts now to know the recent partnership deed format. Also, partnership firm registration online can be done with a few documents in simple steps.
Process for Partnership Firm Incorporation
01
Step 1
Find out the stamp duty on Partnership Deed
02
Step 2
Draft Partnership Deed and Get is Notarised
03
Step 3
Apply for Pan Card of the Partnership Firm
04
Step 4
Obtain TAN Number from the Income Tax Dept, where applicable
05
Step 5
Open Bank Account
06
Step 6
Go for GST Registration & MSME
Documents Required For Partnership Firm Incorporation
["Pan Card","Form No. 1 (Application for registration under Partnership Act)","Original copy of Partnership Deed, signed by all partners","Affidavit declaring intention to become partner","Rental or lease agreement of the property/campus on which the business is set
Benefits Of Partnership Firm Incorporation
- Minimum Compliance
- Simple To Begin
- Comparatively Economical
- Shared Decision Making
- Various Financial Returns to the Partners
- Audit Not Required(if total turnover is below Rs. 1/ 5 Crore as per guidelines)
Checklist /Minimum requirement for Partnership Firm Incorporation
- Minimum Two Partners
- Address Proof for Registered office of the Partnership Firm in India
- Original Deed signed by all Partners
- Maximum partners less than 10/20
FAQs On Partnership Firm Incorporation
Below mentioned are the documents required for Partnership registration.
You can avail Partnership deed in just rupees 1500 with the help of MeraProfit experts
It is not compulsory to register but it is recommended to get certain benefits.
is not necessary to have a written partnership deed but it is recommended to avoid any conflict between the partners in the future.
MeraProfit helps with the registration process of a partnership firm with no hassle. Just follow the three steps mentioned in above section.
Minimum 2 are required and maximum 20 partners are allowed for a partnership firm.
Indian Partnership Act 1932 governs the partnership firms in India.
Please refer the procedure mentioned in above section for partnership firm online registration.
This fees depend on a lot of factors and varies from case to case basis. MeraProfit provides the best pricing in the market. Contact our expert to know the details.
Section 39 of the Indian Partnership Act, provides that “the dissolution of the partnership between all the partners of a firm is called the dissolution of a firm.It implies the complete break down of the relation of partnership between all the partners.
Please find above partnership firm registration process.
You can find partnership firm registration form on MeraProfit website.
A partnership firm needs to pay income tax at 30 of total income. If the total income passes 1 crore then a partnership firm have to pay income tax surcharge on the amount of income tax at the rate of 12 .In addition to the income tax and surcharge, a partnership firm must pay education cess and secondary higher education cess. Education Cess is applicable on the amount of income tax and the applicable surcharge at the rate of 2 . Secondary and higher education cess is applicable on the amount of income tax and the applicable surcharge at the rate of 1 .
Please refer to the above section on this page where you can find advantages and disadvantages of partnership.
