{"id":2507,"date":"2020-01-31T08:15:00","date_gmt":"2020-01-31T02:45:00","guid":{"rendered":"https:\/\/www.grainmart.in\/news\/?p=2507"},"modified":"2020-01-31T01:29:26","modified_gmt":"2020-01-30T19:59:26","slug":"registration-process-and-starting-a-partnership-firm-in-india","status":"publish","type":"post","link":"https:\/\/www.grainmart.in\/news\/registration-process-and-starting-a-partnership-firm-in-india\/","title":{"rendered":"Registration Process and Starting a Partnership Firm in India"},"content":{"rendered":"\n<p>Partnership firms governed by partnership deed are strong forms of business structure that enables accurate division of profit among the partners. Contrary to a <a href=\"https:\/\/www.grainmart.in\/news\/registration-process-and-starting-a-sole-proprietorship-in-india\/\">sole proprietorship<\/a>, this establishment is headed by a group of volunteered individuals supporting a common business agenda. Thereby, the agreed terms and profit beneficiary ratio minimizes the compliance as opposed to companies. Besides, its an easy organization structure to form.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"> Salient Features of a Partnership Firm<\/h5>\n\n\n\n<ul class=\"wp-block-list\"><li> Formed on mutual agreement called Partnership Deed<\/li><li> Righteous business activity <\/li><li> Apt shares of profits and loss between partners<\/li><li> Liability between partners<\/li><li> Clear and collective management <\/li><li> Clear transfer ability clauses <\/li><li> Registration (optional)<\/li><li> Specified duration <\/li><\/ul>\n\n\n\n<h5 class=\"wp-block-heading\">Understanding the Pros and Cons of a Partnership firm<\/h5>\n\n\n\n<p>As stated before, partnership requires minimal compliance. For instance, it is excused from filing annual tax returns along with publicizing the financial statement of the firm. Further, auditing work isn&#8217;t mandatory. On the other hand, the partners do not acquire liability protection and don&#8217;t have eternal survival in the firm. <\/p>\n\n\n\n<p>Additionally, the structure does not encourage investment from Angel investors, Financiers, or Private Equity units. Also, the rates of banks lending money to companies are higher than the Partnership firm.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"> Starting a Partnership firm <\/h5>\n\n\n\n<p> Consider the following things while starting a firm <\/p>\n\n\n\n<h5 class=\"wp-block-heading\"> Name of the firm<\/h5>\n\n\n\n<p> The name can be chosen by the partners keeping two points in mind <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li> Name must not be too familiar or identical to any firm that is in existence.<\/li><li> The name should not contain words (king, emperor, crown) that require government&#8217;s sanction.<\/li><\/ul>\n\n\n\n<h5 class=\"wp-block-heading\"> Partnership Agreement <\/h5>\n\n\n\n<p>The agreement among the partners of the firm that encompass rights, responsibilities, profit shares, along with all the necessary obligatory clauses is the Partnership Deed. Emphasize that, a deed must be written and signed (opposed to agreeing orally) to avoid future conflict. The necessary information to formulate a deed are:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"600\" height=\"730\" src=\"https:\/\/www.grainmart.in\/news\/wp-content\/uploads\/2020\/01\/Sample-Partnership-Deed-Agreement.jpg\" alt=\"Sample Partnership Deed necessary for staring a Partnership Firm\" class=\"wp-image-2508\" srcset=\"https:\/\/www.grainmart.in\/news\/wp-content\/uploads\/2020\/01\/Sample-Partnership-Deed-Agreement.jpg 600w, https:\/\/www.grainmart.in\/news\/wp-content\/uploads\/2020\/01\/Sample-Partnership-Deed-Agreement-247x300.jpg 247w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><figcaption>Sample Partnership Deed necessary for staring a Partnership Firm<\/figcaption><\/figure>\n\n\n\n<h5 class=\"wp-block-heading\"> General details and Specific information <\/h5>\n\n\n\n<ul class=\"wp-block-list\"><li> Name, address, nature of business, date of establishment, capital invested (separately by each partner), profit or loss division ratio.<\/li><li> Interest-based on the capital investment OD each partner <\/li><li> Salaries including all financial drawing by the partners <\/li><li> Rights, Duties, and obligations of every partner specified by name <\/li><li> Alignments in case of mishaps such as defaults or death of a partner <\/li><li> All the clauses mutually decided among the partners <\/li><\/ul>\n\n\n\n<h5 class=\"wp-block-heading\"> Registration of the Partnership Firm<\/h5>\n\n\n\n<p>The registration of the partners is optional, thereby dividing the firms into a registered firm and non- registered firm. Despite that, the firm abiding the Indian Partnership act, 1932 governs the associates of the firm. <\/p>\n\n\n\n<p> Even though, registration is not mandatory it is advisable because<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li> The firm will not have a legal stand against the third party in any case<\/li><li> In the case of misconduct or disagreement, a file can not be registered against the partner.<\/li><li> The liability of an unregistered firm is less<\/li><\/ul>\n\n\n\n<h5 class=\"wp-block-heading\"> Documents Necessary for Registration <\/h5>\n\n\n\n<p> As discussed earlier, any firm is not legally perceptible unless it is registered. Hence, these following document:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li> Application form for registration- <a href=\"http:\/\/keralaregistration.gov.in\/fileUploads\/indianpartnershipact_form1.pdf\">Form 1<\/a><\/li><li><a href=\"https:\/\/rof.maharashtra.gov.in\/Business\/Business-Affidavits.pdf\"> Sample of Affidavit <\/a><\/li><li> Partnership deed copy <\/li><li> Address proof (for the place of business)<\/li><li> Partners documents- <a href=\"https:\/\/www.grainmart.in\/news\/pan-card-for-company-and-firms-online-application-and-process\/\">PAN card<\/a> and Address proof of each individual <\/li><li> Firm documents- PAN card (specially generated for the firm)<\/li><li> Supporting Documents- <a href=\"https:\/\/www.grainmart.in\/news\/complete-process-for-gst-registration-in-india\/\">GST registration<\/a> and <a href=\"https:\/\/www.grainmart.in\/news\/how-to-open-a-current-account-for-your-business\/\">Current account <\/a>details<\/li><\/ul>\n\n\n\n<h5 class=\"wp-block-heading\"> Registration Procedure <\/h5>\n\n\n\n<p> A very simple process is used to register the Partnership firm. That is <\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<ul class=\"wp-block-list\"><li> Initially, issue the <a href=\"https:\/\/www.karnataka.gov.in\/karigr\/Downloads\/Formats%20under%20Indian%20Partnership%20Act\/Frm%201.pdf\">application form <\/a><\/li><li> Fill the form with adequate data and subsequently sign (by all partners)<\/li><li> Further, submit the form to Registrar of Firms of the state where the business is located<\/li><li> Finally, payment of fee<\/li><li> Additionally, submit necessary documents <\/li><\/ul>\n<\/div><\/div>\n\n\n\n<p>Following that, the official analyses the documents for accuracy. Subsequently, if the documents are factual, the officials issue a Certificate of Registration in the name of the Partnership firm. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Partnership firms enables accurate division of profit among partners. Complete guide and process to Partnership deed sample and registration<\/p>\n","protected":false},"author":12,"featured_media":2522,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[9787,4483,9974,9977,9917,9918,9337,9769,9626,9919,9975,9700,9351,9634,9973,9916,9340,9976,9913,9915,9978,9760],"class_list":["post-2507","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-editorial","tag-aadhar","tag-affidavit","tag-annual-return","tag-application-form","tag-business-structure","tag-capital-investment","tag-current-account","tag-form-1","tag-gst-registration","tag-indian-partnership-act","tag-name-of-firm","tag-pan","tag-pan-card","tag-partnership","tag-partnership-deed","tag-partnership-deeds","tag-partnership-firm","tag-partnership-firm-registration","tag-partnership-firms","tag-profit","tag-registrar-of-firms","tag-registration"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Registration Process and Starting a Partnership Firm in India - Grainmart News<\/title>\n<meta name=\"description\" content=\"Partnership firms enables accurate division of profit among partners. 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