“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. There are two types of Partnership firms- Registered and Un-registered Partnership. 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 Filingenie can help with the partnership firm registration in India.
At least two members are required to start a partnership business. But the number of members should not exceed 10 in case of “banking business” and 20 in case of “other business”.
Partners can share the responsibility and duties of running the business. This will allow them to make the most of their abilities due to expertise they hold.
The more partners there are, the more money they can put into the business, which will allow better flexibility in operations and more potential for growth.
A minimum of two Persons is required to start a Partnership firm. A maximum number of 20 Partners are allowed in a Partnership firm.
The Partner must be an Indian citizen and a Resident of India. Non-Resident Indians and Persons of Indian Origin can only invest in a Proprietorship with prior approval of the Government of India.
PAN Card for the Partners along with identity and address proof is required. It is recommended to draft a Partnership deed and have it signed by all the Partners in the firm.
There is no limit on the minimum capital for starting a Partnership firm. Therefore, a Partnership firm can be started with any amount of minimum capital.
An Filing Genie will understand your business requirements and help you start a Partnership firm by drafting the Partnership deed. Based on the requirements, Filing genie can also help register the Partnership deed with the relevant Authorities to make the Partnership Firm a Registered Partnership firm.
Only a registered Partnership firm can file a 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. Also, only a Registered Partnership firm can claim a set off (i.e. mutual adjustment of debts owned by the disputant parties to one another) or other proceedings in a dispute with a third party. Hence, it is advisable for Partnership firms to get itself registered sooner or later.
Partnership firm will have to file their annual tax return with the Income Tax Department. Other tax filings like service tax filing or VAT/CST filing may be necessary from time to time, based on the business activity performed. However, annual report or accounts need not be filed with the Ministry or Corporate Affairs, which is required for Limited Liability Partnerships and Companies.
No, a Partnership firm has no separate legal existence of its own i.e., the Partnership firm and the partners are one and the same in the eyes of law. Liability of the Partners is also unlimited, and the partners are said to be jointly and severally liable for the liabilities of the firm. This means that if the assets and property of the firm is insufficient to meet the debts of the firm, the creditors can recover their loans from the personal property of the individual partners.
Filingenie did an exceptional job in understanding our requirements and executed our company formation including all the legal aspects in a very professional and articulate manner. We were very satisfied with their professional demeanour, as they were extremely well planned and supported it with appropriate supervision and guidance
Your company made it very easy for me to go and it saved me a lot of time and frustration.
Filingenie has demonstrated they are a professional, dedicated and customer focused.