BASIC PLAN
PARTNERSHIP FIRM REGISTRATION
o When 2 persons or more than Two Persons enter into a legal agreement to commence and undertake a Business activity for a profit is called a partnership firm.
o Partnership is an association of two or more persons enter into legal agreement to commence and undertake a Business activity for a profit is called Partnership Firm.
o The Profits of Firm are distributed among the partners according to the terms stated in the Partnership Deed.
o Partnership firms are governed by Indian Partnership Act, 1932 in India.
o Partnership Firms can be classified into two types: Registered and Unregistered Partnership firms.
STANDARD PLAN
Rs 3,999/-
PREMIUM PLAN
- Partnership Deed Drafting.
- PAN Card Apply.
- GST Registration.
- MSME Registration.
Rs 4,499/-
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PARTNERSHIP FIRM REGISTRATION
- Partnership is an association of two or more people formed for the purpose of carrying on a Business. Each person in the partnership is known as a Partner.
- The Profits of Firm are distributed among the Partners according to the terms stated in the Partnership Deed.
- Partnership firms are governed by Indian Partnership Act, 1932 in India.
- Types of Partnership Firm
- Partnership Firms can be classified into two types: Registered and Unregistered Partnership firms.
- The Indian Partnership Act states that the only criterion to commence the business as a Partnership firm is finalization and execution of partnership deed’s between the Partners.
- Under this Partnership act, the Partnership firms don’t need to be registered compulsory. As a result lot of partnership businesses exist as unregistered partnership firms.
- There are no penalties for the nonregistration of the partnership firms.
- Also, a partnership firm can be registered even after formation.
- Why an individual should opt for a registered partnership firm:
- A registered firm partner cannot file suit in any court against the firm or other partners for the enforcement of any right arising from a contract or right conferred by the Partnership Act.
- No suit to enforce a right arising from an agreement can be instituted in any court by or on behalf of a firm against any third party unless the firm is registered under the Partnership Act.
- An unregistered firm or any of its partners cannot claim set-off or other proceedings in a dispute with a third party.
- Therefore, it is better to register a Partnership sooner or later.
HOW TO CONVERT - PARTNERSHIP FIRM INTO LLP
The Process of converting a Partnership firm into an LLP is as follows:
- Firstly, Digital Signature Certificate and (DPIN )OR Director Identification Number (DIN) should be obtained for all the Partners.
- Following documents are required along with Form 17 :
- Consent of Partners for conversion into an LLP
- Incorporation Documents for LLP
- NOC from Tax Authorities
- Financial Statements of the Partnership firm
- List of all creditors along with their consent
- Any other document or information as requested by the authorities.
- All the above mentioned documents are submitted to the Registrar.
- After verification of documents from Registrar, certificate of Registration for LLP is issued.
- The LLP must then inform the concerned Registrar of firms about converting a Partnership into an LLP within 15 days from the date of conversion through the prescribed forms.
- The Licenses, approvals, permits, or registrations will not be directly transferred into an LLP.
- Also, suppose there are any properties registered under the Partnership firm before the conversion. In that case, the LLP must approach the concerned authorities and initiate the laid down procedure for the transfer of assets.
- Hence, before converting a Partnership firm into an LLP, the Partner must clarify all the aspects.
- After the conversion into an LLP, the Partnership stands dissolved, and the name of the Partnership firm is removed from the register of the Registrar of Firms.
- The Partnership firm is considered wholly transferred into an LLP, and the conversion does not affect any existing contracts, employments, agreement, etc.
PRE-REQUISITES FOR PARTNERSHIP FIRM REGISTRATION
- Minimum No. of Partners: 2
- Maximum No. of Partners: 50
- Certified Original copy of the Partnership Deed.
- ID Proofs of the Partners: PAN Card; Aadhar Card/ Passport.
- Registered Office Address Proof: Rental Agreement or Sale Deed and No Objection Certificate from the Property Owner.
DOCUMENTS REQUIRED FOR PARTNERSHIP FIRM REGISTRATION
- Application for Registration of Partnership (Form 1).
- Certified Original copy of Partnership Deed.
- Specimen of an Affidavit certifying all the details mentioned in the Partnership Deed and documents are correct.
- PAN card and Address Proof of the Partners
- Proof of principal place of business of the firm.
- If the documents satisfy the Registrar, the Firm will be entered into the Register of Firms and a Certificate of Registration will be issued.
PROCEDURE FOR PARTNERSHIP FIRM REGISTRATION
FREQUENTLY ASKED QUESTION - FAQ.
Who can form a Partnership Firm ?
- An Indian National who is also a Resident of India can form a Partnership firm.
- However, NRIs are allowed only to invest and needs prior to Government approval before investing in this firm.
Who can form a Partnership Firm ?
- An Indian National who is also a Resident of India can form a Partnership firm.
- However, NRIs are allowed only to invest and needs prior to Government approval before investing in this firm.
Is there any minimum capital requirement to start a Partnership Firm?
- There is no minimum capital requirement to start this firm.
- Whatever minimum amount is needed for maintaining a current bank account balance only needs to be deposited in the bank account.
Is it mandatory to Audit the Partnership Firm Account?
- No. There is no statutory requirement for that.
- However, when the turnover of this firm is more than a particular limit then tax audit is mandatory.
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