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Partnership Firm

 

At Just Rs 3,999/- (All inclusive)

Completely online process

Work handled by professionals

Within 10-15 Days

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Introduction To Partnership Firm

Partnership firm is a form of business, in which, two or more individuals pool in their resources, and agree to operate as business in accordance with their decided terms. In other words, “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”. The terms and conditions on which, the partners agree to operate their business, is known as partnership agreement. Though a partnership agreement may be written or oral, it is always better to have it in writing. A written agreement is known as “Partnership deed” and is governed by Partnership Act, 1932.

The Partnership Firm registration is best suitable for small scale of operations, requiring minimum funds and less compliances. Also, in case of risk of failure, business can be commenced in the form of a Partnership Firm, which can later be converted into any other form of business, to bring in stability. The persons who own the partnership business are individually called ‘partners’ and collectively called ‘firm’ or ‘partnership firm’.

Unilex being the professionally managed firm provides Partnership Firm registration within 4 to 5 working days, subject to government processing time. Our professionals help in estimating the cost of Partnership Firm registration, document required for Partnership Firm and hassle free procedure for Partnership Firm registration.

Advantages of Partnership Firm

Minimum requirements

In comparison to other form of business (especially Company), the formation of partnership firm is quite easy and inexpensive.

Well managed

Various partners are associated with the business of a partnership firm. Each one pools in their resources and ideas, and takes interest in the daily affairs of business. They also share the risks and rewards of the business. Thus, business is managed in a better way.

Many sources

With a number of members, the partnership firm is able to collect larger resources for its business operations as compared to sole proprietorship.

Sharing of Risk

Unlike sole proprietorship, the risk of partnership is not borne by just one person, rather it is shared by every partner.

Adaptable change

The proposed changes in plans can be made within a short span of time, by mutual consent of all the partners, as the number of members is limited. This brings flexibility in business operations.

Equal Oppourtunity

In a partnership firm interest of every partner is protected against any fraud.

Documents required for Partnership Registration

  • PAN card of Partners
  • Address Proof of Partners
  • Utility Bill as Business Address Proof
  • Rent/ Lease agreement of business address and NOC from owner (if)
  • Partnership Deed
  • Current account bank details of firm

Cost of Registration of a Partnership Firm

Get Partnership registration@Rs. 3999* (All Inclusive)
Get your partnership deed drafted along with its registration with Unilex at a very reasonable cost.

Procedure for Registration of Partnership Firm

Understanding Your Business

(Within 1 working day)
  • In order to register the Partnership Firm, the first step we take is to understand your business and your terms and conditions.

Preparation and filing of Partnership Deed

(Within 2-3 working days)
  • Subsequently we prepare your partnership deed along with properly drafted clauses and file the same in application to the concerned Registrar.

Obtaining PAN and TAN

(Within 3-4 working days)
  • After registration of the same and obtaining the Certificate of Incorporation, a separate PAN and TAN application is applied.

Types of Partnership Firm in India


Unregistered Partnership Firm:

In case of an Unregistered Partnership Firm, the partners carry on the business in the manner, as stated and provided in their partnership agreement.

Registered Partnership Firm

In case, partners of the proposed firm seek to get their firm registered, they need to get it done with the Registrar of Firm (RoF) having jurisdiction over the place of business of the firm.

Is Registration of Partnership Firm Mandatory?

The base of a partnership firm is the mutual consent of all the partners. Thus, the existence of the partnership firm does not need registration. Hence, in India, it is not mandatory to get a partnership firm registered. Though non-registration of partnership firm does not invalidate the transactions of the firm, however, it is always advisable to get it registered, in order to avail the following privileges:

  • Privilege to the Firm: Only a registered firm has the right, to sue third parties in case of any default made by them. Further, it is easy for a registered firm to expand its business or convert its business into any other form of business.
  • Privilege to Creditors: A creditor is a person, to whom the partnership firm owes money. A registered firm guarantees assurance to the creditors regarding their right to recover money. All partners whose names are given in the registration shall personally be held responsible to the outsiders.
  • Privilege to Partners: The partners can approach a court of law in case of their internal disputes, or in case of dispute with the outsiders.
  • Privilege to incoming and outgoing Partners: Both, the new and the outgoing partners (in case of death or retirement) have a right in the firm. However, at times, they need to fight for their rights. Their fight gets a legal aid, only when the firm is registered.

What things to be covered under application for Partnership firm Registration?

The application should contain the following information: 

  1. The name of the firm.
  2. The principal place of business of the firm.
  3. The names and addresses of partners and the dates on which they joined the firm.
  4. If the firm is started for a particular period then that period should be mentioned.
  5. If the firm is started to achieve a specific object then it should also be given.

Frequently Asked Questions

I am not a citizen of India. Can I be a partner in an Indian firm?

The Partnership Act does not prohibit a non-citizen from joining an Indian partnership firm, subject to necessary clearances and permissions from satisfactory authorities in this regard.

What is the capital of a partnership firm?

Capital is the initial amount in cash or kind contributed by the partners to start the business. It is not necessary for each partner to contribute equally to the capital. Contribution is based on the agreement between the parties

I have a minor son. Can he be a partner in my partnership firm?

No, a minor cannot become a partner. However, your minor son can be admitted to the benefits of the partnership firm. He can share the profits of the partnership business with the consent of the other partners. He can also access, inspect and copy the accounts of the firm. Though the minor is not personally liable for the losses of the firm, his share in the partnership business is liable for the losses incurred.

What are my limitations as a partner?

As a partner you cannot do the following without the consent of the other partners:

  1. Submit a dispute relating to the business to arbitration.
  2. Open a bank account on behalf of the firm in your own name.
  3. Compromise or relinquish any claim or portion of a claim of the firm.
  4. Withdraw a suit or proceeding filed on behalf of the firm.
  5. Enter into partnership with an outsider on behalf of the firm.
  6. Acquire or transfer immovable property belonging to the firm.
  7. Admit any liability in a suit or proceeding against the firm.
Can a partner transfer his right in the business of the firm to an outsider?

Yes, a partner can transfer his interest in the business to an outsider, but only with the consent of all other partners.

Can a new partner be admitted into the partnership firm?

A partner can nominate a successor to take his place in the event of death or retirement of the partner. The mode of introducing a new partner or successor is based on provisions in the partnership deed. A new partnership deed is required once the new partner is admitted into the firm.